US Dollar Falls From Fibonacci Resistance As Powell Pop Faded-Out

US DOLLAR POSES MILD BOUNCE ON POWELL TESTIMONY THAT’S MOSTLY FADED-OUT ALREADY

Today marks Day One of the Fed’s twice-annual report to Congress, often called ‘Humphrey Hawkins testimony.’ FOMC Chair Jerome Powell is currently addressing the Senate, and tomorrow he marches back up Capitol Hill to address the House Financial Services Committee. As discussed earlier this morning by our own Justin McQueen, the opening statement from Chair Powell was without any significant surprises, as he reiterated patience on rate guidance despite continued signs of solid growth in the US.

The net impact thus far has been a mild bounce in the US Dollar. DXY firmed from an overnight low of 96.26 to re-engage with the Fibonacci level at 96.47 for short-term resistance. Sellers showed reaction to that resistance and at this point, USD is almost back to where it started before Powell began to speak.

US DOLLAR HOURLY PRICE CHART

(Click on image to enlarge)

us dollar usd hourly price chart

Chart prepared by James Stanley

On a larger basis, the big question is whether USD-bears might get some room to run, or whether the bullish trend in the Greenback re-invigorates as month-end nears. The first-half of February was noticeably bullish in the US Dollar on the heels of the January FOMC rate decision. Last week saw that strength begin to pullback, and at this point, the 50% marker of that bullish run is coming-in to help set today’s low.

Underneath current price action rests a confluent zone of support potential around the 96-handle on DXY. The level of 96.00 is the 61.8% retracement of the prior bullish trend while 96.04 is the 50% marker of the 2017-2018 sell-off in the currency.

US DOLLAR FOUR-HOUR PRICE CHART

(Click on image to enlarge)

usd us dollar four hour price chart

Chart prepared by James Stanley

EURUSD EDGES HIGHER; BUYERS THUS FAR UNENTHUSED BEYOND 1.1371

The range in EURUSD has continued to hold despite a seeming lack of excitement from bulls. The range formation in the pair has been in play for more than three months now with support holding the bottom-side of price action through a number of key issues. The spark of strength in the US Dollar at the February open helped to drive prices from range resistance down to support, and last week saw that support cauterize before buyers were able to pose an initial lift away from the 1.1300 handle.

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