The US dollar remained soft during the last week. And also during Asian session. Regardless Powell’s speech, and his defending of the Fed’s current policy to raise interest rates ignoring president Trump’s recent criticism, US dollar remained soft. After Powell’s movements there should be expected a more hawkish signal. We could see the US dollar weakening.
EUR/USD rose on last week testing the 1.1623 resistance line, now turned to support and broke it (during the Asian session). The pair seems to be struggling with the prementioned support line and the upward trend line. We could see it reaching out for the 1.1675 resistance line and even breaching it. On the other side, we could see the pair breaking the 1.1623 support line and aim if not breach the 1.1537 support level.
After two days, US-Sino trade negotiations is finished and it looks like there wont be any main breakthrough. We can expect a new round of US tariffs for about $16 billion of Chinese products.
Fed’s Chairman Powell will speak and we can expect of him to defend the Fed’s current rate hike path. The speech’s title is to be “Monetary Policy in a changing economy”. This even could effectively raise the US dollar’s value with adverse effects. On Powell’s speak we can also expect the low unemployment as well as the accelerating inflation and GDP growth rates in order to argue for the economic situation. Also, we can expect comments about the international trading relationships and their effects on the US economy.
EUR/USD moved sideways with some bearish tendencies, testing the 1.1537 support line. If the pair come under selling interest we could see it breaking the 1.1537 support line and aim for the 1.1482 support barrier. On the other side, we could see it rising and aiming if not breaking the 1.1623 resistance line.
On the last Fed’s meeting minutes US dollar rallied. There are many headlines that continues to weigh on the US dollar. One of the headlines is connected to the guilty plea of Trump’s former lawyer Cohen weighs on the presidency, as he implicates president Trump in crime activities. Currently the president Trump lashed out on his former lawyer. Also, in future we could see the US dollar weakening.
EUR/USD dropped yesterday and today is breaking the upward trend-line (during Asian session), aiming for the 1.1537 support line. On one side, we could see its price action aiming for the 1.1623 resistance line. On the other side, we could see it breaking the 1.1537 support line and aim for the 1.1482 support barrier.