EUR/USD sees a bullish spike post-Powell, holding onto topside gains with targets set on 1.06

• The EUR/USD tapped into 1.0615 after an appearance from Fed Chair Powell sent the Greenback wobbling.
• The post-reaction markets are eating away at the knee-jerk gains, but the Euro remains firmly well-bid for Thursday.
• US Initial Jobless Claims came in better than expected, helping to improve investor sentiment.

The EUR/USD saw a fast spike into 1.0616 after optimistic talking points from Federal Reserve (Fed) Chairman Jerome Powell. Markets have largely absorbed the Fed-fueled reaction, and the Euro (EUR) remains near pre-Fed intraday highs as the US Dollar (USD) takes a light step back for Thursday.

Market risk appetite is improving on the day, keeping the USD on the low end as investors step back into risk assets.

Breaking: Jerome Powell says higher yields can have implications for policy

US Initial Jobless Claims beat expectations, showing just 198K new jobless benefits seekers for the week into October 13th versus the expected 212K, though the previous week's figure was revised from 209K to 211K.

Fed appearances certainly aren't done this week, with an additional five Fed official appearances over the next 24 hours.

EUR/USD Technical Outlook

Thursday's momentary Fed-fueled pop to the upside sees the EUR/USD toying with chart territory just north of a firmly descending trendline from 1.1275, and a sustained break will see the pair set for additional topside and free to take a run at the 50-day Simple Moving Average (SMA) near 1.0700.

On the low side, the last swing low into 1.0500 sits nearby as technical support, with a break of that level opening up the way for a further bearish run into 2023's lows near 1.0450.

EUR/USD Daily Chart

EUR/USD Technical Levels