Chairman Powell is likely to reiterate that the U.S. economy is in a ‘good place’ as the Federal Open Market Committee (FOMC) embarks on its hiking-cycle, and the central bank head may prepare U.S. lawmakers for a less accommodative stance as ‘gradually returning interest rates to a more normal level as the economy strengthens is the best way the Fed can help sustain an environment in which American households and businesses can thrive’. With short-term technical indicators gradually moving into bullish territory, a sustained move beyond the 1.1745-50 immediate supply zone is likely to get extended towards the 1.1800 handle en-route the ascending trend-channel resistance, currently near the 1.1820-25 region. On the flip side, the 1.1700 round figure mark now seems to act as an immediate support and is followed by 1.1670 horizontal level. Any subsequent weakness below the mentioned support seems more likely to be limited and should find support near the ascending trend-channel, currently near the 1.1630 region.
EUR/USD Daily Forecast - 17 July
Ahead of the key event, the US economic docket features the release of June industrial production and capacity utilization data, forecasted to come in at 0.5% and 78.3% respectively, and will be looked upon to grab some short-term trading opportunities. On the EUR side, Consumer Price Index and Industrial Sales numbers for Spain are expected at 08:00 and 09:00 GMT respectively, but market impact will be minimal as traders turn their focus to Powell’s testimony. EUR/USD appears to making another run at the June-high (1.1852) as it snaps the string of lower highs & lows from the previous week, but fresh comments from Federal Reserve Chairman Jerome Powell may tame the recent rebound in the euro-dollar exchange rate should the central bank head strike a hawkish tone in front of Congress.
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