EUR/USD bears are tightening control as the pair tests a critical support zone around 1.0750. A decisive break here could accelerate declines toward 1.0650 amid strong US fundamentals and weakening eurozone outlook. Traders should prepare for increased volatility ahead as key economic data and central bank signals loom.
Following Powell’s speech, the USD surged, breaking above key resistance at 105.00 on the Dollar Index amid subdued 2024 rate cut expectations. EUR/USD fell below 1.0700, pressured by ECB’s dovish stance, while USD/JPY climbed past 157 with BOJ’s easing stance contrasting Fed hawkishness. Markets weigh data dependence and inflation outlook for next moves. Credit: Marc Chandler, Seeking Alpha.
Credit: This article builds upon the Elliott Wave analysis of the S&P 500 originally published by EWM Interactive on August 25, 2023, expanding the insights with additional data to offer a deeper view into current market structure and potential corrective phases ahead.
Jerome Powell’s recent speech reinforced the Fed’s patient approach amid elevated inflation and a strong labor market, supporting the US dollar’s resilience. Technical analysis of major FX pairs like DXY, EUR/USD, and USD/JPY highlights key resistance and support levels shaping near-term trends. For a detailed breakdown of market dynamics, technical setups, and the broader outlook, see Marc Chandler’s comprehensive analysis on Seeking Alpha.
GBP/USD remains in focus as the Pound Sterling faces fresh challenges amid a resilient US Dollar and shifting central bank expectations. With bulls aiming for the 1.2800 level, traders watch key UK inflation data, US labor reports, and global risk sentiment for cues on the path ahead. #FXAnalysis #GBPUSD
EUR/USD trades cautiously mid-day, slightly higher but confined below key resistance at 1.0894–1.0915. Momentum remains subdued with RSI near neutral and MACD flat. Watch 1.0788 support; a break below could resume bearish trends, while a clear break above resistance may trigger bullish momentum. The pair remains range-bound as markets await fresh catalysts. Source: ActionForex.com
Federal Reserve Chair Powell’s latest speech emphasized data-driven policy and a cautious hawkish tone, boosting the U.S. dollar to new heights. The euro faces pressure amid Eurozone economic woes and ECB tightening limits, while the yen remains weak due to Japan’s dovish stance. Key technical levels suggest continued volatility in FX markets. #ForexAnalysis #FedSpeech #USD #EUR #JPY
The Canadian dollar rebounded this week after hitting a two-month low against the US dollar, driven by stabilizing oil prices, easing fears of immediate Bank of Canada rate cuts, and a softer US dollar. With inflation near target and signs of economic resilience, what lies ahead for the loonie amid shifting monetary policies and global market dynamics?
Powell’s recent speech sparked cautious optimism but no clear shift in Fed policy. Dollar index remains range-bound near key technical levels as markets weigh inflation progress and economic resilience. FX traders should watch 105.10 resistance and 104.00 support for direction in coming weeks.
Pound Sterling faces pressure as GBP/USD remains sensitive to the Fed’s interest rate trajectory and ongoing UK economic challenges. With the Fed maintaining a hawkish stance amid persistent inflation and the UK economy showing stagnation, traders should watch key data and central bank meetings closely in the second half of 2024.
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