EUR/USD Forecast: Unable to advance beyond 1.1900 ahead of Fed

Valeria Bednarik FXStreet

EUR/USD Current Price: 1.1850

August US Retail Sales came in much worse than anticipated.
The dollar is under pressure ahead of the US Federal Reserve monetary policy decision.
EUR/USD ranging within familiar levels, the dollar lacks bullish potential.

The EUR/USD pair is holding below the 1.1900 level, despite the dollar is in sell-off mode. The American currency is down against all of its major rivals ever since the day started, as speculative interest is selling in ahead of the US Federal Reserve Monetary Policy decision. Pressure on the greenback has been exacerbated by the recently published August Retail Sales, which came in at 0.6%, below expected. Retail Sales Control Group, contracted to -0.1%, missing expectations of 0.5%.

As for the US Federal Reserve, the central bank is expected to maintain its current policy unchanged, although the market is hoping for more details on the recent shift to average inflation. Policymakers will also unveil fresh forecast on employment, inflation and growth.

EUR/USD short-term technical outlook

The EUR/USD pair is retreating from a daily high of 1.1882, maintaining its neutral technical stance in the short-term. The 4-hour chart shows that the pair is back to the 1.1850 price zone, hovering around directionless moving averages. Technical indicators, in the meantime, have turned lower, now standing within neutral levels. It’s all about the Fed and how the market takes the announcement. Nevertheless, the dollar has little chances of turning bullish, despite this latest pullback in EUR/USD.

Support levels: 1.1840 1.1800 1.1750

Resistance levels: 1.1915 1.1960 1.2010

View Live Chart for the EUR/USD

Premium

You have reached your limit of 3 free articles for this month.

Start your subscription and get access to all our original articles.

Subscribe to Premium Sign In

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.

EUR/USD hovers around 1.1850 ahead of FOMC Minutes

EUR/USD stays on the back foot around 1.1850 in the European session on Wednesday, pressured by renewed US Dollar demand. Traders now look forward to the Minutes of the Fed's January monetary policy meeting for fresh signals on future rate cuts.

GBP/USD defends 1.3550 after UK inflation data

GBP/USD is holding above 1.3550 in Wednesday's European morning, little changed following the UK Consumer Price Index (CPI) data release. The UK inflation eased as expected in January, reaffirming bets for a March BoE interest rate cut, especially after Tuesday's weak employment report.

Gold: Is the $5,000 level back in sight?

Gold snaps a two-day downtrend, as recovery gathers traction toward $5,000 on Wednesday. The US Dollar recovers from the overnight sell-off as rebalancing trades resume ahead of Fed Minutes. The 38.2% Fib support holds on the daily chart for now. What does that mean for Gold?

Pi Network rally defies market pressure ahead of its first anniversary

Pi Network is trading above $0.1900 at press time on Wednesday, extending the weekly gains by nearly 8% so far. The steady recovery is supported by a short-term pause in mainnet migration, which reduces pressure on the PI token supply for Centralized Exchanges. The technical outlook focuses on the $0.1919 resistance as bullish momentum increases.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Top 3 Price Prediction: Bitcoin, Ethereum, and Ripple face downside risk as bears regain control

Bitcoin, Ethereum, and Ripple remain under pressure on Wednesday, with the broader trend still sideways. BTC is edging below $68,000, nearing the lower consolidating boundary, while ETH and XRP also declined slightly, approaching their key supports.