EUR/USD Rises Again on Powell's Speech


The change in the movement pattern of the US dollar currency was more clearly visible in yesterday's New York session, which significantly weakened towards the end of the week.

The decline in the US dollar was more pronounced than the strengthening earlier in the week as the market focused on Federal Reserve (Fed) Chairman Jerome Powell's dovish tone.

In his speech yesterday, Powell reiterated that the central bank's policy cycle has come to an end, and FOMC members also agreed to further easing.

It's just that right now is not the right time to do it and the Fed is in no rush to lower interest rates.

Examining the price movement on the chart of the EUR/USD currency pair, the higher increase in price exhibited yesterday saw a change in the direction of the previous movement.

After the decline at the beginning of the week reached around 1.07300, yesterday's rally broke through the important zone at 1.08000.

Price movement above the Moving Average 50 (MA50) support line on the 1-hour time frame on the EUR/USD chart suggests a bullish price trend has begun.

Next, a higher increase will be expected after yesterday's momentum, for the price to go to the concentration zone at 1.09000.

But uncertainty in the market worries investors as they await the NFP employment data report to be published later on Friday.

The price is at risk of reversing its direction and making a decline again if it fails to continue its upward trend.

The decline is seen to test the 1.08000 zone and if it breaks lower, the lows hit earlier in the week will be the target again.

Next, the 1.07000 zone will be expected to be reached if the further decline in prices continues.