Search ForexCrunch

Powell, Chairman of the Fed, painted a gloomy economic picture and pledged for more easing. Meanwhile, EUR/USD advances modestly, trading in the 1.0840 price zone, FXStreet’s Chief Analyst Valeria Bednarik briefs.

Key quotes 

“Jerome Powell hit the wires with concerning comments about the situation of the economy and the length and shape of the future recovery. Still, he added that the Fed has not run out of armament, suggesting that policymakers are ready to act if needed.”

“The short-term picture is neutral, as, in the 4-hour chart, technical indicators remain around their mid-lines, barely advancing within neutral levels.”

“Further gains seem likely on a break above 1.0865 a strong static resistance level.”