EUR/USD squares up against near-term test again after Waller comments | Forexlive

The greenback is lower as we get into things here in European morning trade, following more dovish comments by Fed governor Waller overnight. In case you missed it:

This is all coming just before the FOMC blackout period, which begins tomorrow. As mentioned yesterday though, there will be an exception to that next week with Fed chair Powell due to deliver opening remarks at the Integrated Review of the Capital Framework for Large Banks Conference. The event is hosted by the Fed itself, hence the exception.

Circling back to Waller’s comments, that is weighing on the dollar with a couple of interesting moves starting to come about. EUR/USD is one of that as the pair runs up to test key near-term levels once more.

The pair has been holding the line at the 100-hour moving average (red line) for the month but that might be giving way now. The key level is seen at 1.1632 currently and if that fails to hold, the near-term bias will switch back to being more neutral instead.

There are large option expiries in the pair at 1.1650 that could still hold any upside during the session. But otherwise, price action is freed up towards the 200-hour moving average (blue line) next at 1.1670 currently.

The more important takeaway though is that the technical signal points to the dollar momentum in the past few weeks beginning to wane. So, just be wary of that as we look towards the closing stages this week.

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