The dollar eased on Tuesday due to congressional testimony by Federal Reserve Chairman Jerome Powell which traders will examine for clues on the pace of U.S. interest rate rises and risks emanating from trade conflicts.
Powell will testify on the economy and monetary policy before the U.S. Senate Banking Committee at 14:00 GMT
He is expected to deliver an optimistic message on the outlook for growth and reassure the FED’s gradual monetary tightening policy but could face tough questions on how the FED would deal with an escalation in the global trade war.
Powell is supposed to begin two days of testimony on the economy and monetary policy later Tuesday when he appears before the U.S. Senate Banking Committee in Washington.
The NZ Q2 CPI data arrived at 0.4%, slightly lower than the 0.5% expected. The year on year data arrived as 1.5 % vs the expected 1.6%
Also, the UK average earning index came in as expected at 2.5%, the unemployment rate was stable with previous reading at 4.2%
On the daily chart, the price has returned to the red resistance zone with shaping before the reversal double top.
The price has formed another reversal pattern to assure the bearish bias with the wedge.
Followed by a break beneath an ascending trend on RSI, the index is supposed to have its way back to the support zone 93.2-92.6.
On the daily chart, the pair bounced back from the resistance 0.7455, to retest the green support zone again.
Followed by divergence on RSI, our bullish view is still the same: Heading towards the combination of levels of descending trend, ascending channel and resistance zone at 0.7655-0.774.
On the daily chart, the price retested the green support zone 0.682-0.6775, followed by divergence in RSI.
An AB=CD harmonic pattern has been shaped to reinforce the bounce.
The price is supposed to head back to the top of the descending channel with the resistance zone at 0.697-0.703.
On the daily chart, as we expected before, the price has reached the red resistance zone at 83.9-85.95.
It’s a crucial area that if the price bounces back from, it will continue its sideways movement to the support zone 81.2-80.5.
If the price breaks above it, it will head new levels to the next resistance zone 85.5-85.95.