Dollar bulls take a breather on Powell's words

The Euro-dollar pair slipped back toward the 1.1000 area at the end of the week, surrendering part of its early-week strength at the close on Friday. Despite the setback, the pair remained within a bullish structure, bolstered by key moving averages.

The latest downside appears driven by fresh remarks from Federal Reserve Chairman Jerome Powell, who stressed growing concerns over tariffs raising inflation and clouding the outlook for monetary policy.

The Fed Chair injected a cautious tone into the market by acknowledging that the newly announced Trump tariffs are likely to have a larger and more persistent economic impact than initially expected.

Powell noted that inflationary pressures could rise in the coming quarters and that it remains too early to determine the appropriate direction for interest rates.

Technically, the EURUSD currency pair still flashes a bullish overall bias despite the recent decline. The Relative Strength Index (RSI) currently hovers near 69, showing waning momentum but still away from overbought territory. The Moving Average Convergence Divergence (MACD) continues to print a positive signal, although fading slightly in intensity.

Meanwhile, both the Awesome Oscillator and ADX indicate neutral trends, underscoring the pair’s consolidation phase.