Good afternoon, dear traders! Today, I present to your attention an overview of the situation on EUR/USD, which repeats the fate of gold after Jerome Powell’s speech yesterday.
During the last trading week, the European currency against the US dollar was trading in the range between two levels: 1.1000 and 1.0940.
Yesterday, there was a barely noticeable, but still a breakdown of the lower level during Powell’s speech, whose speech, by the way, was neutral. However, today at the opening of European markets, EUR/USD showed a rather strong bullish rally that is unusual for this instrument, which can now only speak about one thing – the seller’s weakness. The upper mark of 1.1000 is just an extremely important level for the seller, so further growth of this instrument is very likely.
Today, the market expects a series of news, such as the number of job openings in the JOLTS labor market, followed by another speech by Jerome Powell. Moreover, at 19:00 (London time) a press conference of the Open Markets Committee (FOMC) will begin, which will also be, albeit small, but a driver for the markets. Strong movements at 21:00 should not be expected, since these are ordinary protocols, without a decision on the interest rate.
I recommend working from long positions to update the round level of 1.1. And take profits.
I wish you great profits and good luck in trading!