During yesterday's trading session, the EUR / USD pair updated the weekly low and ended the day with a result of -0.13%.
During his speech at the National Association of Economics and Business in Denver, Fed Chairman Jerome Powell noted that the regulator resumes the purchase of short-term treasury bonds to stabilize the situation on the short-term financing market. At the same time, he noted that the details of the new bond redemption plan will be announced later. In his speech, Powell made it clear that the question of reducing the interest rate at the upcoming Fed meeting is not resolved. Nevertheless, expectations of a third interest rate cut this year are rising, which will put pressure on the US currency. Speaking yesterday, the head of the Federal Reserve Bank of Chicago Evans and the head of the Federal Reserve Bank of Minneapolis Kashkari also supported the course on further easing of monetary policy in the United States.
Today in the economic calendar of Europe there are no important events, so all market attention will be focused on news from the United States. Here again, the speech of the head of the Fed Jerome Powell is expected, as well as the publication of the minutes from the last meeting of the FOMC. Both of these events can affect investors' expectations about the Fed's further monetary policy.
On the chart, the currency pair from support at 1.0945 resumed its upward movement. The immediate target for the bulls is the level of 1.0995. It will be possible to count on the continuation of medium-term growth of quotations only after the breakdown of this mark.
Resistance levels: 1.0995, 1.1025, 1.1085.
Support levels: 1.0945, 1.0915, 1.0890.
The main scenario is a breakdown of resistance at 1.0995 and an increase to 1.1025.
An alternative scenario is consolidation in the range 1.0945-1.0995.
Locally fundamental market background can be described as neutral. There are currently no clear signals to enter the market on the chart. Consider buying a rollback after a breakdown of resistance at 1.0995. Sales are relevant after the formation of reversal at the level of 1.0995 at lower time intervals.