EUR/USD analysis: dollar eases, but range prevails ahead of Fed
EUR/USD Current price: 1.1689
- EU final Markit Manufacturing PMI confirmed at 55.1 after local indexes suffered minor downward revisions.
- Solid US ADP survey on private jobs' creation failed to boost the greenback ahead of Fed's announcement.
The EUR/USD pair is stuck in the 1.1680/90 region, where it settled by the end of Tuesday's US session, as currencies' traders entered wait-and-see mode ahead of the upcoming Fed's monetary policy decision. The central bank is not expected to surprise, but the accompanying statement will be closely watched for twists in policymakers opinion on trade-war effects on the economy, of any change to the current "gradual path" of rate hikes. In the meantime, the EU saw the release of the final versions of local Markit Manufacturing PMI, most of them, suffering downward revisions from the preliminary estimates. For Germany, the index resulted at 56.9 vs. the flash reading of 57.3, although the index for the whole EU came in unchanged at 55.1.
The US ADP survey just released showed that the private sector added 219K employments in July, much better than the 185K expected and the previous 177k. The market, however, barely reacted to the news. Still pending of release are the official and the Markit manufacturing PMI ahead of Fed's meeting outcome. Meanwhile, European equities are falling big, dragged by renewed concerns about the trade war and falling oil prices, while US indexes are poised to open just marginally lower.
The EUR/USD pair peaked for the week at 1.1745 but once again failed to hold on to gains above the 1.1720 level, also unable to settle above a daily descendant trend line coming from July's high. The short-term picture is neutral, according to the 4 hours chart, as the price is hovering around its 20 and 100 SMA, both converging directionless and barely above an also flat 200 SMA, while technical indicators lack directional strength, stuck around their midlines.
Support levels: 1.1660 1.1620 1.1590
Resistance levels: 1.1720 1.1750 1.1790
Author
Valeria Bednarik
FXStreet
Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.
