The Euro closed higher for the 4th consecutive day yesterday after improved German IFO surveys boosted the single currency against the greenback. Traders turned more bullish just ahead of today’s Powell’s speech. It is worth noting that the Fed removed the word “patient” from its forward guidance last week, setting the stage for a rate cut either in July or sometime in Q3-Q4. Market participants will take cues from today’s US housing data and consumer confidence, if the data misses expectations, it could give the Fed more reasons to cut as soon as July.
The Euro broke above 1.14 for the first time since March, as the single currency bulls are buckling up for a big potential upside move. If 1.14 holds, then we will likely see a push towards 1.1440 in today’s session. However, price may pull back towards 1.1370 before continuing its upward move. The bears, on the other hand, need to break back below 1.1340 to stop this current bullish momentum.
Support: 1.14 / 1.1370
Resistance: 1.1440 / 1.1480