EUR/USD Price Analysis: Powell fails to bend markets out of shape, status quo points to 1.0120/50.

EUR/USD bulls remain in play despite hawkish Powell.Bulls can target 1.0120/50 so long as 1.0000/0.9980 holds. 

The euro was shaken up initially on the knee-jerk but has not been bent out of shape technically on the 4-hour charts.EUR/USD remains above a key support area of 1.0000. The following illustrates the upside bias so long as this support remains intact for days ahead with a focus on 1.0120 on a breach of 1.0080. 

EUR/USD H4 charts

The bullish harmonic pattern leaves an upside bias on the charts so long as D holds around 0.9900. For the near term, for positive conviction, bulls will be more encouraged should the area between 1.0000/0.9980 hold, as per the W-formation’s support zone. The neckline of the pattern is a 50% mean reversion of the range between points C-D. 

Zooming down, we can see there is resistance between the highs of the day and 1.0080. This is a high volume area that guards the target and 1.0145 higher up. 

EUR/USD retreats below 1.0000 after Powell’s speech

EUR/USD has erased a big portion of its daily gains and retreated below 1.0000 after FOMC Chairman Jerome Powell’s speech at the Jackson Hole Symposium. Powell reiterated that the Fed will watch the data before deciding on the size of the September rate hike.

EUR/USD News

GBP/USD in free-fall towards 1.1700

GBP/USD has reversed its direction after having advanced to a daily high of 1.1900 during the American session on Friday. The pair fell sharply during Powell’s presser as Fed’s chief unwound risk-aversion. The Fed won’t hesitate on rate hikes, despite whatever harm that means to economic growth. 

GBP/USD News

Gold plunges post-Powell’s words and nears weekly lows

Gold has turned south after having advanced beyond $1,750 during the American trading hours on Friday. The benchmark 10-year US Treasury bond yield is up 1% on the day following Powell’s speech at the Jackson Hole Symposium, forcing XAU/USD to stay on the backfoot.

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