#EURUSD @ 1.07859 Powell warns inflation remains “too high,” signaling potential for more aggressive rate hikes to bring it down to 2%.

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• Powell warns inflation remains “too high,” signaling potential for more aggressive rate hikes to bring it down to 2%.

The pair currently trades last at 1.07859.

The previous day high was 1.0877 while the previous day low was 1.0805. The daily 38.2% Fib levels comes at 1.0832, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.0849, expected to provide resistance.

The EUR/USD pair trades volatile in a 40 pip range, as the Federal Reserve Chair Jerome Powell warns that inflation remains “too high” in his Jackson Hole speech. At the time of writing, the EUR/USD is trading at around the 1.0815-40 range.

US Fed Chair Jerome Powel commented that the central bank is prepared to hike rates further, if appropriate, until inflation moves “sustainable down to 2%.” He emphasized that the Fed would remain data-dependent and proceed “carefully” when pulling the trigger and lifting rates.

Powell said there’s a long way to go, and just two months of good data is the beginning of the Fed’s road to tame inflation towards the 2% target. When talking about a neutral rate level, policymakers remain uncertain. Fed Chair acknowledged that current monetary policy faces risks on both sides regarding growth and inflation.

Regarding economic growth and the labor market, Powell added that growth has surprised to the upside, and it might be a reason for more rate hikes while adding that the job market not cooling could also warrant more Fed action. He added, he expects July Personal Consumption Expenditure (PCE) at 3.3%, while core PCE at 4.3%.

The EUR/USD hourly chart shows the pair skyrocketed towards 1.0839 before reversing its course and found bids at 1.0810. Since then, the major skyrocketed towards 1.0841 but has retreated below the daily pivot point at around 1.0830. US Treasury bond yields are failing to gain traction, while the US Dollar Index is pairing some of its earlier losses, is down 0.06%, and sits at 103.930.

Technical Levels: Supports and Resistances

EURUSD currently trading at 1.0832 at the time of writing. Pair opened at 1.081 and is trading with a change of 0.2 % .

The pair is trading below its 20 Daily moving average @ 1.093, below its 50 Daily moving average @ 1.098 , below its 100 Daily moving average @ 1.0929 and above its 200 Daily moving average @ 1.0801

The previous day high was 1.0877 while the previous day low was 1.0805. The daily 38.2% Fib levels comes at 1.0832, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.0849, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.0785, 1.0759, 1.0713
• Pivot resistance is noted at 1.0856, 1.0902, 1.0928

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