EURUSD Outlook; Market Shiver As President Joe Biden Reappoint Jeremy Powell

After a consensus opinion concludes that Jeremy Powell should be awarded to remain in office for the next 4 years. President Joe Biden on arrival at the occasion for assigning a new federal reserve chairman made it known to the public that his intention for appointing Jeremy Powell as the chairman of the federal reserve committee remain candid. The president further added to the juice of the event by authorising Lael Brainard as the vice-chairman of the committee.

With this being a crucial legalisation for the US economy. Yet several market speculators are on the outlook for what the second appearance of Jeremy Powell in office will mean to the major currency market. And to add to the notion of the market participants, president Joe Biden believes Jeremy Powell will be a great candidate to tackle the hyperinflation trend that's reigning over the US economic strength.

However, what the market holds in expectation for Jeremy Powell, second term in office is to encounter an interest rate hike in the middle of 2022. While this could be an unpresentable report to the market performance of the Euro currency. On the flip side, the appearance of a rate hike will cause the greenback to gain strength in purchasing power.

Euro Fundamental Analysis Round-Up

Several economical factors contributed to the drawback of the Euro performance last week; The rate hike expectations of the market players had been forfeited, as the European Central Bank (ECB) President Christine Largade claimed that the policymakers aren't creating significant attempts towards the tightening of the Eurozone monetary policy sooner.

The president of the ECB in a conference, also added that there should be no expectations for rate hikes in 2022. With this in mind, the economic downturn that is battling with the European nations has made the US dollar become the fast-rising safe-haven currency the institutional investors are holding firm on.

Last week, the EUR/USD market saw an inflow of continuous bearish moves in market value, in which 95% of the negative price action recorded in the market, was taken to be the consequence of the positive fundamental economic updates released from the US region.

Possibility Of Rate Hike In 2022

A report from Reuters indicates that the US federal reserve committees Richard Clarida and Christopher Waller had a debate on Friday concerning the appropriate measures for curbing the hyperinflation flames that is toying around the overall well-being of the US economy. With this being put to watch, It'll likely seem the Federal Reserve will go all in to ensure that an important hyperinflation easing strategy would be put to work along the middle of 2022.

Technical Analysis For EURUSD Market: Price Extend Loss Amid The Increase In Supply

1-Hour Chart

EURUSD Trade with a strong bearish trend sentiment while the market volatility of the pair expands accordingly in a downward negative trend direction. From a technical analysis viewpoint, the overall market sentiments of the pair reside in a deep red oversold condition, after the price had been confirmed to have found support along the 1.12554 support Line. Hence, a surge in the price of the EURUSD currency pair above this level will enable the market to resume a short term bullish retracement to the bullish price target of 1.136 before further bullish volume will be required to soar the price of the pair beyond the initial support level.

1-Day Chart

From the daily price chart, the value of EURO had declined sharply against the greenback following the break-in price below the neckline of the double top candlestick chart pattern that is drawn over the chart. The indicator analysis for the currency pair on this time frame implies that the market had existed in a very low region of the RSI while volatility steadily ride above the multi Year low, thus a bullish surge in the price of the Euro should be welcome in the market sooner.

1-Week Chart

The EUR/USD weekly chart has the big pictures as the entire trend direction of the Euro-dollar maintain a similar

resistance level along with the price of 1.200s supply zone. However, the market exists in a bearish sentiment which a further plunge in the value of the Euro should be explored in the market this week. From indicator analysis, the market is approaching an oversold condition while the volatility ratio of the market dips further.

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