- EUR/USD remains mildly bid near the six-month high ahead of the Fed meeting.
- Bearish candlestick, overbought RSI challenge further upside near the monthly resistance line.
- 100-SMA restricts immediate downside ahead of three-week-old ascending support line.
- US inflation cut hawkish Fed bets, favored EUR/USD bulls but FOMC is the key to near-term directions.
EUR/USD picks up bids to reverse the early Asian session pullback from a six-month high, mildly bid near 1.0640 by the press time. Even so, the major currency pair remains inactive during early Wednesday as traders await the key Federal Open Market Committee (FOMC) announcements.
Also read: EUR/USD floats above 1.0600 ahead of Federal Reserve monetary policy meeting
That said, the quote rallied to the highest levels since June the previous day before retreating from 1.0673.
The pullback moves could be linked to the EUR/USD buyer’s inability to cross a one-month-old ascending trend line as the RSI (14) line pokes the overbought territory. Also likely to have challenged the upside momentum is the late Doji candlestick at the multi-day top.
As a result, the pair’s pullback towards 1.0600 round figure appears imminent.
However, the EUR/USD bears are likely to remain off the table unless witnessing a clear downside break of the 100-SMA level surrounding 1.0455.
Following that, an ascending support line from November 21, close to 1.0380 at the latest, will act as the last defense of the EUR/USD bulls.
On the contrary, an upside break of the aforementioned resistance line from mid-November, near 1.0650 as we write, could challenge the EUR/USD pair’s immediate recovery before directing the bulls towards the latest swing high around 1.0675.
In a case where the pair remains firmer past 1.0675, the 1.0700 threshold and highs marked in June around 1.0775 will be in focus.
EUR/USD: Four-hour chart
Trend: Pullback expected
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.
Recommended content
Editors’ Picks
EUR/USD stays near 1.0800 after upbeat US data
EUR/USD stays under modest bearish pressure and trades near 1.0800 in the American session on Thursday. The data from the US showed that the real GDP growth for the fourth quarter got revised higher to 3.4% from 3.2%, supporting the USD and weighing on the pair.
GBP/USD stays in daily range above 1.2600
GBP/USD fluctuates in a narrow channel above 1.2600 on Thursday. The better-than-expected Initial Jobless Claims data from the US and the upward revision to the Q4 GDP growth helps the USD stay resilient against its rivals and limits the pair's upside.
Gold pulls away from daily highs, holds above $2,200
Gold retreats from daily highs but holds comfortably above $2,200 in the American session on Thursday. The benchmark 10-year US Treasury bond yield stays above 4.2% after upbeat US data and makes it difficult for XAU/USD to preserve its bullish momentum.
XRP price falls to $0.60 support as Ripple ruling doesn’t help Coinbase lawsuit against SEC
XRP programmatic sales ruling by Judge Torres was completely rejected by another US Court that ruled in favor of the SEC in a lawsuit against Coinbase.
Portfolio rebalancing and reflation trades emerge into Q2
Yesterday’s price action pointed at a possible end-of-quarter portfolio rebalancing as the session saw the laggards of the quarter like Apple and Tesla gain, and the stars like Microsoft and Nvidia retreat.