The greenback saw some limited demand during the first two sessions of the day, reversing sharply lower against the Euro on the back of FED’s officers comments that toned down a rate hike in September.
The vice chairman of the US Central Bank, Stanley Fischer, said that they are still concerned about low inflation and won’t move before it sees inflation returning to more normal levels.
Following his words, Dennis Lockhart pledge once again for a rate hike, but this time he said it should come soon, omitting to refer explicitly to September as he did during the past week, triggering a USD sell-off.
The EUR/USD pair advanced to a daily high of 1.1041 before stalling, and holds firm above the 1.1000 level by the end of the day.
The technical picture is still bullish in the short term, as the 1 hour chart shows that the price extended well above its moving averages, with the shortest above the largest and maintaining its bullish slope. In the same chart, the technical indicators have lost their upward strength, but remain above their mid-lines.
In the 4 hours chart the technical indicators maintain a strong upward momentum whilst the 20 SMA contained the downside, supporting additional advances, particularly on a break above 1.1045, a daily descendant trend line coming from 1.1435, and the immediate resistance.