EUR/USD Analysis: within familiar levels ahead of FOMC Minutes
|EUR/USD Current Price: 1.0974
- News related to the US-China trade war keep leading sentiment and currencies.
- FOMC Minutes and a speech from Chief Powell to set the tone during US trading hours.
- Stops likely accumulating just above the 1.1000 level, sellers waiting for higher levels.
The EUR/USD pair has recovered from a weekly low of 1.0940, backed by US-China trade talks positive headlines, although the positive momentum eased ahead of the critical 1.1000 resistance. Speculative interest remains on its toes amid US-China trade talks, with related headlines moving sentiment back and forth. The latest news indicate that China is open to making a deal with the US, despite Trump’s administration canceling vista to authorities and adding companies to a blacklist.
Meanwhile, US Federal Reserve Chief Jerome Powell spoke late Tuesday and said that the central bank restarting its Treasury purchases was “in no way” the same as post-crisis quantitative easing, although it clearly affected the greenback negatively, as it’s quite alike. Powell will speak again today, while mid-US afternoon, the FOMC will publish the Minutes of its latest meeting. It seems unlikely that the pair would be able to move far away from the current levels ahead of Fed-related events.
EUR/USD short-term technical outlook
The EUR/USD pair is neutral, according to the 4 hours chart, as it is currently battling with the 20 and 100 SMA, which offer modest downward slopes, while technical indicators have advanced between negative levels to turn flat around their midlines. The 200 SMA in the meantime, extended its decline, now around 1.1015. Stops are likely accumulating above the 1.1000 level, and if those are triggered, the pair could spike higher toward the 1.1040/50 price zone. Nevertheless, the long-term picture is still bearish and there are good chances spikes would attract selling interest.
Support levels: 1.0960 1.0920 1.0880
Resistance levels: 1.1000 1.1045 1.1080
View Live chart for the EUR/USD
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