On Wednesday, the volatility of EUR/USD totaled about 140 pips. On the one hand, there is no surprise in that as it was the day when Fed Chair Powell testified in Congress. On the other hand, his testimony had the opposite effect on the pair. Before the testimony, the instrument traded rater actively. But as soon as it started, the dollar instantly plummeted by 70 pips. Markets were unimpressed with Powell's speech in Congress. He once again stressed that the Fed's main goal was to bring inflation to the 2% target, which means monetary tightening would continue. On this hawkish rhetoric, the US dollar should have shown growth but it fell instead. The situation was similar to the one after the FOMC meeting when it was also supposed to go up but it actually went down. Thus, an increase in the euro on Wednesday can't be explained from the point of logic. All in all the uptrend goes on.
In the M5 time frame, the pair mainly moved in the trend. No buy signal was unfortunately made around 1.0465 as the pair failed to reach the mark. Otherwise, traders could have earned more. The first buy signal was created only after the price had broken through 1.0532. Further, the quote broke through 1.0564, tested 1.0607, and bounced from it. And then it was the time to close long positions. Profit totaled about 50 pips.
Trading plan for Thursday:
In the M30 time frame, the pair was in an uptrend on Wednesday, and it was a rather uncertain move. Therefore, there was no point in building a trend line or a channel. In the M5 time frame, levels 1.0465, 1.0532, 1.0564, 1.0607, 1.0636, 1.0663, and 1.0697 stand as targets on Thursday. A stop-loss order should be set at the breakeven point as soon as the price passes 15 pips in the right direction. On Thursday, the eurozone will see the release of business activity data in the services and manufacturing sectors. Similar data will be published in the United States. The market might react to the results should one or several indicators differ from economists' forecasts. Fed Chair Powell's testimony in Congress will continue on Thursday.
