The EUR/USD exchange rate is continuing to generate consistent volatility and again is among the top movers of the day.
After it managed to successfully break below the key support level established at the 1.1280 level we have now erased all the previous losses and are back in green territory for the week.
The bulls managed to show up again and defend the 2018 low established at the swing low 1.1215.
The broad based dollar weakness has help the EUR/USD exchange rate jump higher being among the top performer yesterday.
Fed Chairman Powell has kept the news headline busy and he maintained the Fed’s dovish rhetoric that interest rate policy is on hold until further notice.
The greenback got weaker across the board once the news hit the market; however the euro managed to gain the most.
The EUR/USD outlook for the upcoming trading session remains neutral as we’re still pretty much trading in a very wide range.
The recent rally is not yet threatening the broader bearish trend as we need a decisive break outside this range and above the big psychological number 1.1500 to suggest a change in the market sentiment.
Elsewhere on major currency pairs the British Pound is only marginally higher on the day and overall we’re still in the read for the week.
As long as we trade below the big psychological number 1.3000 the bearish momentum should prevail.
The bulls would need a daily break and close above to suggest a change in the market sentiment.
The positive developments around the ongoing Brexit negotiation have given a boost to the British Pound.
The British Foreign Minister Hunt is confident about the possibility to get a Brexit deal by March 29.
There are also rumors reported through the UK press that Prime Minister May is facing a major government revolt if she can’t get a deal within the next 30 days.
The other notable break but unnoticed by the market is the USD/JPY move above the big round number 110.00.
The positive progress on US-China trade talks came over the past few trading sessions and naturally the currency that are bought in a risk off environment are sold.
The US President Trump made it clear that he could extend the 1st March deadline, which is an improvement in the trade war talks.
We also sow further improvements to avert a US government shutdown.
It looks like the market is confident that we’re going to have a deal and get the budget approved by the Friday’s deadline.
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