Powell underwhelming US Dollar EURUSD levels to watch

August 27, 2021 12:30 PM
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Bank notes of different currencies

After 24 hours our hawkish Fed speakers, which seemed to be setting up Powell for the easy lay-up, Powell took a 180 degree turn and continued to talk about needing to reach maximum employment and and how inflation is transitory.  Markets were  “disappointed” and ran to buy stocks and sell the US Dollar. 

TradingView chart of Euro vs USD. Analysed on August 2021 by FOREX.com

Source: Tradingview, StoneX

With a weaker US Dollar,  EUR/USD took off.  Levels to watch:

  • Horizonal resistance at 1.1850
  • 200 Day Moving Average, horizontal resistance previous highs, and 61.8% Fibonacci retracement level from the May 25th highs to the august lows at 1.1990/1.2035
  • Above there is a downward sloping trendline near 1.2250, as well as previous highs at 1.2265

If markets reverse and move lower, was the August lows near 1.1666

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Related tags: EUR Forex Powell Trade Ideas

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