Although senators asked Jerome Powell questions about lowering interest rates, the head of the Federal Reserve gave little away and responded with evasive answers. So, the situation remains unchanged. Today's speech in the House of Representatives is unlikely to bring any new information either. Moreover, the U.S. central bank is waiting for inflation data, which will be released tomorrow. Thus, the most likely scenario is a period of market stagnation.
Despite the fact that the EUR/USD pair has slowed down its upward cycle, the quote has been holding above the 1.0800 level for five trading days. This points to bullish sentiment.
On the 4-hour chart, the RSI technical indicator is hovering in the upper area of 50/70, which corresponds to an upward trend.
On the same chart, according to the Alligator indicator, two out of the three moving average lines are intertwined. This indicates that the upward cycle is stagnant.
Outlook
The euro could rise further if the price settles above the 1.0800 level. We expect the volume of long positions to increase once the euro is above the 1.0850 mark. The bearish scenario will come into play if the price returns below the 1.0800 level.
Comprehensive indicator analysis in the short term does not have stable indicators due to stagnation. In the intraday period, the indicators are reflecting an upward cycle.
