The dollar continues on its way down as global sentiment improves. Traders are dumping the safe-have greenback in favour of riskier assets like euro, pound and emerging currencies. Fed Chairman Powell is scheduled to testify before the Senate Banking Committee later today. Markets expect reiteration of strength of the underlying economy and patience in regards to the central bank’s tightening agenda.
On the technical side, EURUSD is testing the 30-day moving average around 1.1365. A break above could trigger a rally above 1.1400. 1.1340 is the immediate support on the downside.
The sentiment-price correlation chart shows a new high as the price rallies, which indicates a strong bullish bias.