Powell’s speech – US dollar remains soft

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.