Forex Marketz Daily Forex News – Fully Markets Update
Looking at the world’s most liquid currency exchange rate, the EUR/USD, the euro currency is above the fifty day (50) simple moving average (SMA).
There are also bullish signals on the above daily MT 4 chart as traders wait on Congressional testimony from the Chair of the Federal Reserve Board (Fed), Mr. Jerome Powell.
Federal Reserve Board Chair Jerome Powell
will be giving his semi-annual Congressional testimony today. Euro and U.S.
dollar traders will be looking for any signals whether or not the American
central bank will begin changing their massive monthly asset purchases program,
known as quantitative easing (QE).
Forex traders should note that the Federal Reserve Board is mandating full
employment over their target goal of two percent inflation. There is still a
lot of slack in the world’s largest economy’s labor force.
As far as economic data is concerned today, the United States will be releasing their CB consumer confidence gauge as well as the monthly Richmond Fed manufacturing index. The U.S. will also publish monthly housing price index (HPI) data.
The European Union is publishing final monthly consumer price index (CPI) data and the United Kingdom is releasing key labor data today, including their monthly claimant count change.
Daily Euro Currency Technical Analysis (EUR/USD)
Looking at the above EUR/USD price action chart, the 14 day relative strength index (RSI) is looking to confirm a bullish head and shoulders breakout. This could signal more strength for the euro currency.
If this happens the downtrend in the EUR/USD Forex market from the January high price point is over and the uptrend is starting again.
The 14 day MACD histogram is also showing a bullish signal. This momentum indicator is showing higher bars below the mid line.
With that said, should this Forex market sustain above the 50 day simple moving average, now at 1.2152, the bulls will take control. This barrier has held multiple times since 10 February.
The next upside barrier lines up at the 22 January high price at 1.2350/49. A failure to stay above the 50 day SMA brings back focus towards 1.21.
