Swing area between 1.21435 and 1.21496
As yields moved lower and stocks increased, the flow of funds has moved back out of the USD.
In the EURUSD, the price also had technical disappointment on the break of the 200 hour moving average at 1.21168. The prices now moved back above its 100 hour moving average as well at 1.21331.
The next target comes at the old swing area between 1.21435 and 1.21496. The high price just reached 1.2144.
Admittedly, markets are for the 2nd day in a row getting comfort from Powell's testimony. Brainard's comments were also in line with his and suggest no change in rates and also a comfort with the inflation expectations not running quickly to the upside.
Does that translate into a lower dollar/higher EURUSD? Perhaps. The price action will help tell the story. Right now the price is back above the moving averages which is more bullish, and testing a swing area up to 1.29496 (call it 1.2150). Sellers could lean against that level and put a ceiling on the pair just as easily as crack above and go for the highs. This swing areas in the last line of defense for the sellers. If they hold, the technical picture keeps the sellers in play. Move above and the picture does not look encouraging for the sellers.
