Awaiting Powell’s testimony, the US dollar’s stance is uncertain. Analyzing EUR/USD, GBP/USD, and USD/CAD setups, highlighting critical technical levels.
The US dollar’s performance has been somewhat uncertain as investors await key events, particularly Fed Chair Powell’s testimony before Congress later in the week. Powell’s remarks could significantly impact market sentiment and drive volatility. Despite the support from rising U.S. Treasury rates, the dollar has yet to show a clear trend against major currencies, reflecting traders’ hesitancy due to the upcoming events.
Looking at the technical analysis of major currency pairs:
EUR/USD Forecast
- EUR/USD edged higher, nearing its 50-day simple moving average at 1.0860.
- Bulls may target February’s high near 1.0900 if they breach the 50-day SMA.
- Conversely, bears must defend the 1.0835 support level, with further support at 1.0800 and 1.0725.
Market Watch: EUR/USD, GBP/USD, and USD/CAD Amidst Dollar Uncertainty
GBP/USD Forecast
- GBP/USD rose above its 50-day simple moving average at 1.2675.
- Resistance lies at trendline resistance around 1.2710 and further at 1.2830 if bullish momentum persists.
- Support levels include 1.2675 and 1.2615, with potential attention towards the 200-day SMA at 1.2575, which is significantly declining.
USD/CAD Forecast
- USD/CAD consolidated higher after bouncing off support at 1.3545.
- Resistance levels to watch are 1.3620 and 1.3700 if the upward momentum continues.
- Support is expected around 1.3545 to 1.3535, with a potential decline towards the 200-day SMA at 1.3475 if these levels break down.
The technical analysis provides insights into potential price movements based on current market dynamics. Traders will likely monitor these levels closely in the context of Powell’s testimony and other upcoming economic data.
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