- EUR / USD created a Doji candle on Thursday and remains stable in Asia.
- The Fed’s Powell introduced an average inflation target on Thursday.
The EUR / USD market has turned indecisive, as Thursday’s Doji candle indicates.
The pair jumped after Federal Reserve Chairman Jerome Powell introduced an average inflation target of 2%. Under the new strategy, the Fed will be more willing to allow inflation to exceed the 2% target before raising rates.
The top and bottom of the Doji are now key levels to watch in the short term. A close above the Doji High of 1.1902 would mean the period of indecision has ended with the bulls regaining control. In this case, the pair may hit the psychological hurdle of $ 1.20.
Alternatively, a close below Doji’s low of 1.1762 would imply a short-term bearish reversal and expose the old hurdle turned support at 1.1495 (March high).