EUR/USD prints fresh daily highs near 1.1750, remains sideways ahead of the FOMC statement


  • Market participants await the outcome of the FOMC meeting.
  • US dollar losses momentum remains mostly sideways.
  • EUR/USD holds in consolidation range between 1.1715 and 1.1750.

The EUR/USD made a run to 1.1744, reaching a fresh daily high and quickly pulled back to 1.1730, holding in the two-day range between 1.1715 and 1.1750 ahead of the FOMC statement. The move higher took place amid an improvement in risk appetite.

Equity prices on Wall Street are in green. The Dow Jones rises by 1.20% and the Nasdaq 0.80%. Recently prices spiked, triggering a move lower of the US dollar across the board.

Despite hitting fresh highs, EUR/USD continues to move within the 1.1715-1.1750 range. The key support stands at 1.1700, and below comes the August low at 1.1662. On the upside, the immediate strong barrier is the 1.1750/55 band; followed by 1.1780 and 1.1805.

Awaiting the Fed

Market participants await Fed’s statement to be released at 18:00 GMT. No change in rates is expected and the key will likely be the clues about the purchase program. Jerome Powell will hold a press conference at 18:30 GMT. New economic and interest rate projections will also be released.

“It's all about the Fed as markets gear up for this key meeting. While we do not expect a taper announcement or a shift in the median dot-plots, we think the risk leans towards a more hawkish outcome. The pre-Fed USD rally since last week suggests a hawkish risk may have been priced, but we reckon that it will be difficult to leave a dovish impression, with Powell likely to shed more light on tapering, and the low bar to shift the median dots higher”, explained analysts at TD Securities.

Technical levels

EUR/USD

Overview
Today last price 1.1736
Today Daily Change 0.0010
Today Daily Change % 0.09
Today daily open 1.1726
 
Trends
Daily SMA20 1.1803
Daily SMA50 1.1792
Daily SMA100 1.192
Daily SMA200 1.1987
 
Levels
Previous Daily High 1.1749
Previous Daily Low 1.1715
Previous Weekly High 1.1846
Previous Weekly Low 1.1724
Previous Monthly High 1.19
Previous Monthly Low 1.1664
Daily Fibonacci 38.2% 1.1736
Daily Fibonacci 61.8% 1.1728
Daily Pivot Point S1 1.1711
Daily Pivot Point S2 1.1696
Daily Pivot Point S3 1.1677
Daily Pivot Point R1 1.1745
Daily Pivot Point R2 1.1764
Daily Pivot Point R3 1.1778

 

 

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