Technical Analysis: EURUSD extends recoveries from key horizontal support ahead of Fed Chair Powell's testimony
EURUSD benefits from the market's latest optimism backed by the Federal Reserve's readiness to buy more corporate bonds and offer lending support to the non-profit organizations. However, the pair moves are confined ahead of the key testimony by Fed Chair Jerome Powell. As a result, buyers are waiting for a clear bullish signal, or even rejection of the previous bearish bias, to challenge the monthly top near 1.1420. It should be noted that the overbought RSI conditions might restrict the pair's upside past-1.1420, if not then the March month peak surrounding 1.1500 could lure the bulls.
Alternatively, sellers will seek cautious statements due to the coronavirus (COVID-19) in order to revisit the 1.1240/35 horizontal area comprising multiple highs marked since December 31, 2020. If at all sellers dominate past-1.1235, 61.8% Fibonacci retracement near 1.1165 will become the bears' favorite.