EUR/USD to end the week on a high note, propelled by Powell

EUR/USD is trading above 1.1750 amid terror in Afghanistan and mixed US data. In the view of Yohay Elam, an Analyst at FXStreet, the euro is well-positioned to benefit from a dovish Powell.

See – EUR/USD: Euro's appreciation path to be bumpy – NBF

Fed Chair Powell's speech may fall short of taper hints, weighing on the dollar

“How much of Powell's dovishness is priced in? Probably only partially. Esther George, James Bullard, and Robert Kaplan have called to kick off the tapering process on Thursday. Such comments have supported the dollar. The greenback also received safe-haven flows after the horrific terror attacks in Afghanistan.”

“A dovish speech coming on top of a relatively bid dollar implies a fall for the currency. Ahead of the speech, US Core PCE – the Fed's preferred gauge of inflation – comes out and is expected to edge up from 3.5% to 3.6%.” 

“How is the euro positioned? The sole data point published in the old continent was German Import Prices, which smashed expectations with a monthly rise of 2.2%. More importantly, covid cases are falling in Europe, providing hope for a smoother recovery.” 

“Resistance awaits at 1.1780, the weekly high, followed by 1.1805, 1.1825 and 1.1860.” 

“Support is at the daily low of 1.1740, followed by 1.1725, 1.1695 and 1.1660.”