Dollar buying picks up some steam ahead of Powell
The EURUSD has extended its move lower and in the process has moved into the swing target area in the 1.1336-498 area. That area on the hourly chart had a number of swing levels going back to December 18th. Yesterday the level was broken, but after the failure, the 1.1336 low level held support. Get below now, and expect more selling.
Of course the next BIG event is ahead with Chair Powell being joined on a panel with ex-chairs Bernanke and Yellen (why does he put himself into this frying pan).
In the past, the old chairs have tended to avoid criticism of the current chair, but there is that possibility. The market will be focused on what Powell says. If you polled the market yesterday, it might have been expected that Powell could signal a more definitive pause. Now with the data ("we are data dependent"), that idea is less likely.
Stocks trading at highs (S&P up 54 points at 2502). Oil trading at highs ($1.70 or 3.6% at 48.80). Gold going lower on the higher dollar (-$15).
For now, the dollar remains bullish on the day.
