EURUSD: Euro higher, US$ under pressure ahead of the FOMC by FX Charts Daily

EUR/USD: 1.0975
The dollar remains under heavy pressure today after yet more soft USA data (Consumer Confidence) as the market awaits the outcome of the FOMC Meeting due later in the upcoming US session. The Fed is expected to keep policies unchanged and there is little expectation of any change in the language in the accompanying statement, which will be the main focus as there will be no press conference at this meeting.Technically the Euro has been strong through the session, having seen only a minor dip, to 1.0859, but on the topside has managed to reach the trend resistance joining the 26 Mar and 6 April tops at 1.0990, which at this stage still holds. The dip from there has been shallow and the Euro currently sits at 1.0975 where it is trying hard to break above the 55 DMA, which it has not managed to do, on a closing basis, since May 2014.

With the daily charts still showing positive momentum further gains look possible, and if 1.0990/1.1000 is taken out then stops will be triggered that could take the Euro on towards 1.1035 (Apr 6 high)  and to 1.1052 (26 Mar high). Beyond here would allow an acceleration towards the major descending trend resistance, which currently lies at 1.1095 and should be very strong resistance as it is also the 26 Jan spike low that preceded a correction to 1.1530. Beyond 1.1100 would open the way towards the 100 DMA, currently at 1.1330, although that is for another day.

On the downside, dips will find support at 1.0920 (minor) and then at 1.0900, although this seems unlikely ahead of the FOMC outcome. If the Fed are more hawkish than expected, then the 100 HMA currently sits at 1.0830 and the 200 HMA at 1.0800.

Ahead of the FOMC, there will be some data from the EU but which will most likely be largely ignored. The provisional Q1 US GDP will be released ahead of the FOMC Meeting. It will be volatile  and from a technical perspective, buying dips appears to be the plan.

Economic data highlights will include:

German Retail Sales, EU Consumer Confidence, Economic Bulletin, German Provisional CPI, US Provisional Personal Consumption/Expenditure, GDP, Pending Home Sales, FOMC Meeting/Interest Rate Decision.


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