EUR/USD: Euro range bound, ready to break out with Powell speaking in Congress
- Market participants are anxiously waiting for Powell’s take on the US economy.
- German inflation is expected to decelerate to 1.3%y/y in February.
The single European currency is trading little changed at around 1.2330 against the US Dollar as ECB Mersch and German Bundesbank president Weidmann are scheduled to speak during the European trading hours.
The key event of the day and of this week is the Federal Reserve Chairman Jerome Powell’s Congressional testimony on the state of the US economy and the outlook for monetary policy, with investors around the world eagerly waiting for clues.
In terms of the macro data, coming up next is the German inflation that is expected to decelerate to 1.3% y/y in February, down from 1.4% y/y in the previous month.
On Monday, the ECB president Mario Draghi spoke in front of the European Parliament in Brussels, with his speech having a limited impact on the Euro. Draghi said that the Eurozone economy is expanding robustly and that the labor market is expected to improve with inflation expected to reach ECB’s targets.
Technically, the EUR/USD is trading in the 1.2340-1.2260 range. Intraday resistance is seen at 1.2340 figure and just below the high of the day. Further up 1.2360 psychological level in conjunction with the 200-period moving average on the 1-hour chart should provide some resistance. To the downside the 1.2300 big figure along with the 50 and 100-period moving average on the 1-hour chart should provide some support. Further down 1.2260 is the cyclical low and psychological support.
EUR/USD: 1-hour chart
