07.02.2023 03:31 PM
EUR/USD outlook for February 7, 2023

Federal Reserve Chairman Jerome Powell's speech today at the Economic Club of Washington (17:40 GMT) can "swing" the dollar (and therefore the main dollar currency pairs) both up and down.

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Having reached a local 10-month high of 1.1032 last Thursday, the EUR/USD pair subsequently fell sharply, primarily amid a strengthening dollar. Over the last four trading days, the pair has lost 2.5% in price, currently trading near the 1.0710 mark. Having rebounded from today's low at 1.0697, EUR/USD is trying to rise into the short-term bull market zone above the 1.0751 resistance level (200 EMA on the 4-hour chart).

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A break of the important short-term resistance at 1.0841 (200 EMA on the 1-hour chart) will confirm the return of EUR/USD bullish dynamics, sending the pair towards the recent high and the upper boundary of the upward channel at 1.1032 on the daily chart.

Alternatively, the EUR/USD will continue to decline to the important support level 0.0670 (50 EMA and the bottom line of the upward channel on the daily chart), a breakdown of which will give a new bearish impulse to the pair on its way to the key support levels 1.0515 (200 EMA on the daily chart) and 1.0480 (144 EMA on the daily chart). Their breakdown will finally return EUR/USD to the long-term bear market zone.

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Support levels: 1.0670, 1.0595, 1.0515, 1.0480, 1.0230

Resistance levels: 1.0751, 1.0841, 1.0930, 1.1000, 1.1032, 1.1130, 1.1610

Trading scenarios

Sell Stop 1.0690. Stop-Loss 1.0760. Take-Profit 1.0670, 0.0595, 1.0515, 1.0480, 1.0230

Buy Stop 1.0760. Stop-Loss 1.0690. Take-Profit 1.0841, 1.0930, 1.1000, 1.1032, 1.1130, 1.1610

Jurij Tolin,
Analytical expert of InstaForex
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