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Thomson Reuters
Jul 17 - 02:36 PM
EUR/USD - COMMENT-EUR/USD Bears Know Best After Powell Testimony
First appeared on eFXplus on Jul 17 - 01:05 PM

Fed Chief Powell stirred EUR/USD bears from their slumber.
Downward pressure on EUR/USD took after he gave short shrift to market concerns on U.S. trade policies while noting the economy is nearing the cusp of "several years" of strong jobs markets with inflation hovering near the Fed's 2 percent target.
Powell also left the expected rate hike path intact after noting that the best path forward is to keep gradually raising rates.
The hawkish comments diverge with those of Draghi and the ECB who are set to remain patient on tightening monetary policy.
EUR/USD bears are clearly in charge, with the pair falling sharply from the daily cloud base and 55-DSMA and now threatening to break the 21-DMA.
yield spreads edge wider to further weigh upon EUR/USD.
RSIs have turned lower and a daily bearish engulfing candle forms which have technicals favoring the downside.
The July 13 low is support below the 21-DMA.
If that's cleared 1.1500/10 support likely gets tested.
A break there could see the next leg of the long-term bear market take hold.

chart: Click here

Thomson Reuters IFR Markets


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