The Single currency slumps towards 1.1650 after Fed Powell's hawkish remarks while testifying in front of the U.S Congress. He confidently stated that the Federal Reserve will continue hiking rates every three months given that the U.S economy is witnessing a strong labor market, a healthy inflation rate and a balanced economic outlook.
For today, the main driver for the pair would come from the Euro's side with the release of Europe's CPI figures. Lately, Eurozone data has been mixed with some showing strength and others showing weakness making it difficult to try to predict in what direction the CPI will print.
The pair failed to break above the 1.1740 resistance level and formed a bearish double-top pattern. The failure to break above 1.1740 coincides with the failure to break above the 200-period moving average signaling a continuation of the long term downtrend. A break below the next support level at 1.1610 will expose the 1.1560 point which coincides with the 1.27 Fibonacci extension.
Support: 1.16100 1.15600
Resistance: 1.16500 1.17240