EUR/USD prints fresh highs above 1.1980 as Powell speaks

• The dollar remains under pressure across the board, even amid higher yields.
• EUR/USD moves closer to the barrier of 1.1990/1.2000.

The EUR/USD rose further and climbed to 1.1983, hitting a fresh three-week high. It remains at the top, with the bullish tone intact as the US Dollar drops across the board. Fed’s Chair Powell is speaking at the Economic Club of Washington.

The greenback hit fresh lows gains most of its rivals after Powell started to talk. He mentioned it is highly unlikely the Fed would raise rates before the end of 2022, but warned is “outcome-based.” He repeated the economy is at an inflection point. Regarding inflation, he looks for the annual rate to remain moderately above 2% for some time.

In Wall Street, stocks are rising modestly, with the Dow Jones up 0.55%, at fresh record highs. Crude oil soars and the WTI gains 5%. Metals are mixed, affected by higher US yields. The 10-year yield is up 1.65% at 1.64%.

Eyes on 1.1990/1.2000

The EUR/SUD is rising for the third day in a row as it is trading slightly above the 55-day moving average. It is approaching the 1.1990/1.2000 barrier. A consolidation above should point to additional gains ahead. The next resistance stands at 1.2035. The positive short-term momentum should remain in place in EUR/USD as long as it holds above 1.1920/30.  

Technical outlook