As the bullish sentiment strengthened, the bulls took the challenge back to the broad downtrend at 104.35-60 on Thursday.
However, the challenge, once again, was rejected.
On Thursday, U.S. Federal Reserve Chairman Jerome Powell struck a dovish tone after affirming his commitment to keeping interest rates low for the foreseeable future even as he expressed hope for a strong economic recovery.
“When the time comes to raise interest rates, we’ll certainly do that, and that time, by the way, is no time soon,” Powell said during a Q&A session presented by Princeton University.
The Fed has held rates at 0-0.25% to provide relief to the economy since the coronavirus pandemic gripped the United States in March 2020.
Elsewhere, President-elect Joe Biden spoke to the nation Thursday (U.S. time), addressing the COVID-19 pandemic and the economy and unveiling a two-step recovery plan that will cost $US1.9 trillion ($2.44 trillion).
Called the “American Rescue Plan”, the legislative proposal would meet Biden’s goal of administering 100 million vaccines by his administration’s 100th day.
Viewing the technical assessment, the two leading indicators, the Relative Strength Index (RSI) 3-day ‘lookback’, is questionable as it pressures the 50-midway point, while the Moving Average Convergence Divergence (MACD) is bullish.
From the rejection could see a re-challenge of 103.45.
Conversely, in the event, we witness a break of 104.35-60 should reopen the way to 106.00.