EUR/USD Bears Remain in Control as Fed Doves Turn into Hawks
The dollar maintains the bullish tone, pushing the EUR/USD pair back to near 1.12 handle as markets focus on growing number of hawks at the Federal Reserve.
Fed rate hike talk supports USD
The greenback has been on a recovery mode since yesterday after Fed policymakers took turns on Monday to talk up April/June rate hike bets. Markets were caught off guard by Federal Reserve policymaker Evan’s transformation from a dove to hawk.
Investors fear a growing number of hawks at the Fed may result in a sooner-than-expected rate hike. At the time of writing, the pair was trading at the session low of 1.1204. The spot clocked a high of 1.1223 earlier today.
EUR/USD Technical Levels
The immediate hurdle is noted around 1.1250 (5-DMA + 61.8% of 1.1714-1.0517 + 100% Fibo of 1.0517-1.1060-1.0711), above which spot could target 1.13. If bears fail to defend the same, doors would be open for a re-look at last week’s high of 1.1336-1.1342. On the other hand, a breakdown of immediate support at 1.12 (10-DMA) could see prices descend to 1.1173 (23.6% of 1.0517-1.1376), which if breached shall shift risk in favor of a drop to 1.1115 (50% of 1.1714-1.0517).
(Market News Provided by FXstreet)