- The US dollar plummets in the face of immediate reaction to Powell’s speech.
- EUR / USD rises towards 1.1800, adding to weekly gains.
The pair EUR/USD it reversed sharply from 1.1734, jumping to 1.1798, following the publication of Fed Chairman Powell’s speech at the Jackson Hole Symposium. His words caused the US dollar to fall across the board.
Powell sends a signal that the Federal Reserve could begin to reduce its buying program this year. According to him, the economy has made “clear progress” toward the Fed’s goals of eliminating the stimulus.
The DXY hit weekly lows near 92.70, equity markets moved higher and US yields fell. Metals rallied significantly with XAU / USD testing $ 1,800 / oz.
The fall of the dollar propelled the EUR / USD which is about to test the 1.1800 / 05 zone. A higher breakout could lead to more profit. The next resistance is at 1.1830 followed by 1.1845.
Technical levels
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