EUR/USD Current price: 1.1611

  • Fed left rates unchanged, doors opened for a December move.
  • Trump's decision about next Fed's head to be announced this Thursday.

The EUR/USD pair closed the day lower, but still within its weekly range as US data indicated strong economic growth. The US Federal Reserve had a monetary policy meeting, but market's reaction was quite limited, as the Central Bank left interest rates unchanged, remarking in the accompanying statement that the US economy is "solid," despite inflation "remained soft" and is likely to remain so in the short run. The news didn't change market's conviction that a rate hike will come in December.

A partial holiday in Europe kept the macroeconomic empty, although local equities soared, undermining the common currency. In the US, economic news were mostly positive, as the ADP report beat expectations, indicating that the private sector added 235K new jobs in October, also surpassing September revised figure of 110K.  The final October Markit manufacturing PMI came in at 54.6, beating previous estimate of 54.5, marking the fastest pace of improvement in nine months. The official ISM manufacturing PMI, also showed economic expansion, although the index came in at 58.7 for the same month, a decrease of 2.1 percentage points from September 60.8. Attention now shifts to BOE's decision, expected to have little influence on the pair, and Trump's decision on next Fed's head, both to take place this Thursday.

Technically, the pair is gaining bearish strength short-term, as it is closing the day below the 1.1630 price zone, where it has the 23.6% retracement of its latest daily decline, and its 20 SMA in the 4 hours chart. Technical indicators in the mentioned time frame head lower within bearish territory, with the price now posed to test October low of 1.1575, below the level, there's little in the way towards 1.1460, the strong static resistance that capped advances all through 2015 and 2016. Nevertheless, further dollar's gains will depend on how the market takes Trump's announcement.

Support levels: 1.1575 1.1540 1.1500

Resistance levels: 1.1670 1.1700 1.1745

View Live Chart for the EUR/USD

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended Content

Recommended Content

Editors’ Picks

EUR/USD steadies near 1.0220 with eyes on German/US inflation amid hawkish Fed bets

EUR/USD steadies near 1.0220 with eyes on German/US inflation amid hawkish Fed bets

EUR/USD picks up bids to reverse early Asian session losses, stays mildly bid around weekly top. DXY tracks sluggish yields even as Fedspeak favors 75 bps rate hike in September. Final readings of Germany’s HICP inflation for July can entertain traders ahead of US CPI.


GBP/USD turns sideways around 1.2080 as investors await US Inflation release

GBP/USD turns sideways around 1.2080 as investors await US Inflation release

GBP/USD is juggling in six-pips as investors are expected to create positions post US Inflation data. For Fed’s neutral stance, a spree of a slowdown in price pressures is required. The UK's GDP is expected to remain vulnerable ahead.


Gold: Bear cross to challenge bulls ahead of US inflation Premium

Gold: Bear cross to challenge bulls ahead of US inflation

Gold price tested the $1,800 mark for the first time in over a month on Tuesday, having shrugged off resurgent demand for the US dollar even as the Treasury yields jumped across the curve. XAU/USD eyes a softer US CPI print for a big break above the $1,800 mark.

Gold News

How to trade DOGE as crypto markets coil up after recent crash?

How to trade DOGE as crypto markets coil up after recent crash?

Dogecoin price trades between the $0.078 resistance and $0.057 support levels. DOGE could either sweep the $0.074 level first before crashing to $0.057 or directly do it from its current position. A daily candlestick close above $0.078 will invalidate the bearish outlook for the meme coin.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!