On the hourly chart we get a good summary of the price action thus far. It is one of a weakening USD. We have to be mindful though that on the shorter time frames, sentiments probably have a bigger influence.
1.14 Holds For Now
The strong resistance and pivot of 1.14 has held against two bullish attempts to breach the region. A third attempt is underway. Do be mindful that it may go above but the question is will it remain above. That requires close observation.
US Fed Chair Dovish
It was reported that in a testimony to the Senate Banking Committee, Mr Powell mentioned of the volatility in the financial markets at the end of last year. He also mentioned that the financial conditions now are not supporting as much as before in terms of growth. As we know, dovish comments indicate the possibility of a further push back of any interest rate hike. This likely added to the negative sentiments towards the US dollar.
Trump Kim Summit Fails
it was reported that talks between the two leaders failed as North Korea wanted a full lifting of sanctions without reciprocating in a way satisfactory to the US. While there are reports of stocks dipping in response, we have yet to see any significant risk aversion on the EUR/USD ( where the USD strengthens ). We should monitor and review as the situation unfolds.
Rest Of The Week
We have much more economic data due to be released such as the important US advance GDP. Having said so, the US Non-Farm Payroll is due next week despite Friday being 1st March.