The Euro closed negatively yesterday as the greenback picked up a bid in the US trading hours after the Fed officials squashed expectations of a 50 basis point rate cut in July. Yesterday in his speech, Chair Powell said the central bank is assessing whether a cut in July is necessary or not, implying that nothing is final yet. In addition, Fed’s Bullard said the current US economic conditions do not warrant a 50 basis point cut in interest rates. These comments could hurt the bullish market sentiment even further if today’s US Durable Goods data blows past the forecast, validating Bullard’s comments and forcing the market to scale back expectations of aggressive Fed easing.
The Euro pulled back and closed around 1.1360s, after temporary trading above 1.14 for the first time since March. The trend is still intact and the bulls are still in full control as long as price remains above 1.1340 and 1.13. The bears, on the other hand, will attempt to break below 1.1340 and 1.13 respectively, to end this current bullish domination.
Support: 1.1340 / 1.13
Resistance: 1.1370 / 1.14