Euro hovering near daily lows as Fed’s Powell is bullish on the US economy

  • Fed’s Powell is not expecting a recession in the United States (US). 
  • Powell’s optimistic remarks allow the Greenback to inch higher against the Euro.

 

EUR/USD daily chart

 

On the daily time-frame, the shared currency is trading in a bear trend below its main daily simple moving averages (DSMAs). This Friday, the US Non-farm Payrolls (NFP) in the United States (US) came in below expectations with only 130K jobs added in August vs. 158K forecast. However, the wages, the Average Hourly Earnings beat expectations with 3.2% vs. 3.1% forecast. Earlier, FOMC Chairman Jerome Powell said he was not expecting a recession in the US. His upbeat comments triggered some modest weakness on the EUR/USD currency pair.

EUR/USD four-hour chart

 

EUR/USD is consolidating the recent advance from the 2019 low. The market is trading below downward sloping 100 and 200 SMAs suggesting a bearish bias. Bears need to overcome 1.1009 key support if they intend to drive the market towards 1.0981 and 1.1063 support levels, according to the Technical Confluences Indicator.

  

  

EUR/USD 30-minute chart

 

EUR/USD is trading just below the 1.1038 level and the 50/100 SMAs, suggesting a consolidation in the near term. Bulls would need to reclaim 1.1073 resistance to generate upside interest.

 

Additional key levels