The dollar hovered around a two-week low on Thursday, weighed down by the latest insistence from Federal Reserve chairman Jerome Powell that rate increases aren't on the radar, while sterling has been riding higher with re-opening optimism.
Overnight, the Fed first sounded confident about the economy in its statement. Then Powell was more circumspect and said in his news conference that rate increases were "a ways away" and that the job market still had "some ground to cover".
The greenback initially rose following the statement, before retreating to a two-week low of $1.1849 per euro after Powell's remarks. It seems to be taking a breather from a month-long steady rise, and the euro is now above its 20-day moving average.
Yesterday’s surge higher suggests a reversing turn to bull trending trade. The market must post a close over 1.1888 to confirm an upturn and project bull trending moves to 1.1930 as well as potential to 1.1950. Congestion in the upper half of yesterday’s rally will work on shifting trend forces to the upside. A close under 1.1785 (SAR) is needed to rekindle bear trending.
Resistance 2 1.1888
Resistance 1 1.1862
Support 1 1.1820
Support 2 1.1800