Dollar continues its fall ahead of Chair Powell

The USD continues to fall after the better than expected core PCE and a stable full of Fed officials who are basically saying the same thing

• rates need to get to restrictive territory
• inflation is our main concern
• Fed is data dependent

A quick look at some of the major currencies from a technical perspective:

• EURUSD: The EURUSD has moved up to test its 200 hour moving average 1.00413 and further away from the parity level. The pair is now moving higher and above that key MA level as a report saying some ECB sources see 75 basis points as a point of discussion at the next policy meeting. That headline is sending the EURUSD through the 200 hour MA and looking toward the 38.2% at 1.0078. Close risk is now the 200 hour MA. Another risk level for traders would be the high from yesterday 1.00326. The parity level is getting more and more in the rear view mirror. The break above the 200 hour MA is the first since August 15 since August 15 since August 15.

• GBPUSD: The GBPUSD is stepping higher as well and tests the high for the week at 1.1877. The next target is the 200 hour moving average at 1.18910. A move above the 200 hour moving average would be the first since August 17. The GBPUSD traded above and below the lower 100 hour MA (blue line), but moved higher in the London morning session and was goosed a bit higher after the weaker core PCE data in the US today.

• The USDCHF is moving lower and toward its 200 hour MA at 0.95907. The current price trades at 0.9598. A move below the 200 hour MA would be the first break since August 17.