EUR/USD Forecast: Fed Chair Speculations Ease Bearish Pressure, Only For The Time Being

The EUR/USD pair staged a goodish rebound during the Asian session on Thursday and was being supported by a wobbly US Dollar, led by speculations that US President Donald Trump is likely to nominate current Fed Governor Jerome Powell to succeed Janet Yellen. Investors looked past the Fed's latest policy update on Wednesday, wherein the central bank left interest rates unchanged but left doors open for a widely expected December rate hike move. The Fed announcement, however, did little to provide any fresh bullish impetus to the greenback as investors preferred to wait for Trump's decision over the next Fed Chair, expected to be announced later on Thursday.

On the economic data front, buoyant private-sector employment report was partly negated by weaker-than-expected ISM manufacturing PMI and had little impact on the market movement. In the absence of any significant market moving economic releases from the European economic docket, the USD price dynamics would remain an exclusive driver of the pair's momentum on Thursday.

From a technical perspective, the pair remains within a familiar trading range, with the 1.1600 handle acting as a strong support and previous support break-point, near the 1.1660-70 region, acting as an immediate strong hurdle. Hence, traders are likely to wait for a decisive breakthrough this narrow trading range before initiating any near-term positional trades.

A convincing break through the 1.1660-70 barrier is likely to trigger a short-covering bounce and accelerate the up-move even beyond the 1.1700 handle towards its next hurdle near the 1.1745-50 region. Alternatively, sustained weakness below the 1.1600 mark would turn the pair vulnerable to aim towards testing the key 1.15 psychological mark, with some intermediate support near the 1.1560-55 region.