#EURUSD #Bullish #BreakoutAbound
The Fiber has been consolidating for the entire day today after ending two straight days in the green and it is totally understandable as Fed Powell is scheduled to speak in a little less than two hours. Nobody is making a move until we see some cues from the chairman in regard to their interpretation of the previous NFP and any statements in general from the Fed.
On the technical front, the rally from last Friday put the pair in an area near the 1.0770 key resistance area and we have spotted a potential breakout to the upside based on the confluences below;
- EURUSD just bounced off the rising trendline
- Price remains well above the 1.0610 minor resistance level after NFP’s volatility
- The underlying momentum is in favor of the bulls
- USD is perceived to be on the weaker end as depicted by NFP’s aftermath
Two possible scenarios for EURUSD
- The pair makes an impulsive breakout to the upside, above the 1.0770 level, if the market senses any hints of dovishness from Powell
- Insufficient strength and conviction to propel EURUSD upwards before the all-important CPI numbers and the pair either continue to range or stage a sell-off towards the rising trendline
Financial Markets Analyst
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