EUR/USD: EUR/USD Stabilizes After Powell Testimony, Focus on US Jobs Data

March 10, 2023

Table of Contents

Bearish View

Take profit: 1.0460
Stop-loss: 1.0620
Timeline: 1-2 Days

Bullish View

Buy Stop: 1.0595
Take profit: 1.0670
Stop loss: 1.0500

The EUR/USD experienced a sell-off but stabilized at 1.0547 after Jerome Powell’s testimony in Congress. The focus is now on the release of US non-farm payrolls (NFP) data. Powell maintained the Fed’s view on inflation and decision-making dependence on data. Economists predict over 200k jobs were added in February, and the unemployment rate remains low. If the labour market remains tight, the Fed may maintain its hawkish stance and monitor inflation data closely. The EUR/USD responded to weak European GDP data, with the economy remaining unchanged in Q4, and the German economy contracting by 0.4%.

There are no significant economic data releases from Europe or the US on Thursday. The latest initial and continuing jobless numbers and challenger job cuts are unlikely to affect the EUR/USD pair significantly. Technically, the EUR/USD price experienced a bearish breakout, with the next significant level of support being at 1.046. The pair is below the lower side of the ascending channel, the 50-period moving average, and the first support of the Woodie pivot points, while the MACD and signal lines moved below the neutral point, and a double-top pattern has formed.

Author Amsterdam