EUR/USD sees a bullish spike post-Powell, holding onto topside gains with targets set on 1.06

The EUR/USD tapped into 1.0615 after an appearance from Fed Chair Powell sent the Greenback wobbling.
The post-reaction markets are eating away at the knee-jerk gains, but the Euro remains firmly well-bid for Thursday.
US Initial Jobless Claims came in better than expected, helping to improve investor sentiment.

Joshua Gibson FXStreet

The EUR/USD saw a fast spike into 1.0616 after optimistic talking points from Federal Reserve (Fed) Chairman Jerome Powell. Markets have largely absorbed the Fed-fueled reaction, and the Euro (EUR) remains near pre-Fed intraday highs as the US Dollar (USD) takes a light step back for Thursday.

Market risk appetite is improving on the day, keeping the USD on the low end as investors step back into risk assets.

Breaking: Jerome Powell says higher yields can have implications for policy

US Initial Jobless Claims beat expectations, showing just 198K new jobless benefits seekers for the week into October 13th versus the expected 212K, though the previous week's figure was revised from 209K to 211K.

Fed appearances certainly aren't done this week, with an additional five Fed official appearances over the next 24 hours.

EUR/USD Technical Outlook

Thursday's momentary Fed-fueled pop to the upside sees the EUR/USD toying with chart territory just north of a firmly descending trendline from 1.1275, and a sustained break will see the pair set for additional topside and free to take a run at the 50-day Simple Moving Average (SMA) near 1.0700.

On the low side, the last swing low into 1.0500 sits nearby as technical support, with a break of that level opening up the way for a further bearish run into 2023's lows near 1.0450.

EUR/USD Daily Chart

EUR/USD Technical Levels

EUR/USD

Overview
Today last price	1.0566
Today Daily Change	0.0029
Today Daily Change %	0.28
Today daily open	1.0537

Trends
Daily SMA20	1.056
Daily SMA50	1.0705
Daily SMA100	1.0829
Daily SMA200	1.0822

Levels
Previous Daily High	1.0594
Previous Daily Low	1.0523
Previous Weekly High	1.064
Previous Weekly Low	1.0496
Previous Monthly High	1.0882
Previous Monthly Low	1.0488
Daily Fibonacci 38.2%	1.055
Daily Fibonacci 61.8%	1.0567
Daily Pivot Point S1	1.0509
Daily Pivot Point S2	1.048
Daily Pivot Point S3	1.0438
Daily Pivot Point R1	1.058
Daily Pivot Point R2	1.0622
Daily Pivot Point R3	1.065

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

EUR/USD edges lower below 1.1650 as Middle East tensions fuel US Dollar strength

The EUR/USD pair trades in negative territory around 1.1635 during the early Asian session on Thursday. The US Dollar strengthens against the Euro as escalating Middle East conflict boosts safe-haven flows. Traders brace for the Eurozone Retail Sales and US weekly Initial Jobless Claims reports, which will be released later on Thursday.

GBP/USD tests key moving averages as growth downgrade weighs

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Gold benefits from a retreating USD; reduced Fed rate cut bets cap gains

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