EURUSD stands at the back foot ahead of Fed Powell’s speeches

EURUSD was a tad higher on Friday morning following nearly 0.8% drop on Thursday, when the Euro was deflated by soft EU inflation numbers which may add to ECB’s dovish stance in the near future.

Additional pressure came from stronger dollar on speculations that Fed Chair Powell may surprise on hawkish shift in his speeches due later today.

Two-day pullback after a double failure at psychological 1.10 barrier, found temporary footstep on Fibo support at 1.0882 (23.6% retracement of 1.0448/1.1017 rally).

The pair is holding within a narrow consolidation above one-week low, as traders await fresh direction signals from Powell’s speeches.

Overall picture is still bullish on daily chart, but near-term structure is weak, with bearish bias to remain in play while the action stays below broken 10DMA (1.0926) and risk test of next pivotal supports at 1.0818/00 (200DMA / weekly cloud top / Fibo 38.2% of 1.0448/1.1017), violation of which would open way for deeper drop.

Friday’s close below cracked Fibo resistance at 1.0559 (61.8% of 1.1275/1.0448) would confirm bull-trap on weekly chart and add pressure on Euro.

Res: 1.0926; 1.0965; 1.1000; 1.1017
Sup: 1.0882; 1.0847; 1.0818; 1.0800