EUR/USD trying to hit the brakes near 1.1500 in the post-FOMC aftermath

The Euro is flatlining in early Thursday trading after a rough and tumble post-FOMC Wednesday.
European EcoFin meetings on the docket today will be delivering the majority of volatility potential for the day.

Joshua Gibson FXStreet

The EUR/USD finds itself on the low side, testing just south of the 1.1500 major handle heading into Thursday's European market session, and another round of the EU's EcoFin meetings.

The Euro saw declines in yesterday's trading, slipping steadily from the day's high of 1.1580, and sellers gained momentum heading through Wednesday's US session after the US FOMC produced a headily hawkish Minutes report, lending some extra power behind the Greenback to take the Fiber back down into the 1.1500 key technical figure, a key level that the EUR/USD has found itself trading into for a good chunk of 2018.

The economic calendar is fairly thin for the Euro, with the German Wholesale Price Index at 06:00 GMT (forecast 0.4%, last 0.3%) alongside the Swiss Trade Balance for September (forecast 2.482 billion, last 2.134 billion), but the low-impact figures are unlikely to drive much action as traders keep an eye out for headlines spilling over from the EU's EcoFin meeting, which continues today in Brussels. Yesteday's meetings were largely dominated by talk of Brexit, but with the idea of the two sides reaching an interim deal mostly a wash, talks will likely continue focusing in the Italy-EU faceoff, with Italy's budget drawing plenty of ire from fiscally-conservative voices within the EU's leadership.

EUR/USD levels to watch

The Fiber is beginning to look weary of trying and failing to mount a meaningful bullish play, and as FXStreet's own Valeria Bednarik notes, 1.1600 is shaping up to be a significant ceiling for the EUR/USD: "bulls have been discouraged after several failed attempts to break above 1.1600, pushing the pair through the lower end of its latest range and a strong support, now resistance, the 23.6% retracement of the 1.1814/1.1431 decline at around 1.1520. In the 4 hours chart, and despite bouncing from such low, the pair is trading below its 20 and 100 SMA, both converging right below the 38.2% retracement of the mentioned decline and with bearish slopes, keeping the risk skewed to the downside. The Momentum indicator in the mentioned chart maintains its bearish slope well below its midline, while the RSI has accelerated his decline, currently at 34 all of which favors a downward extension toward its recent lows in the 1.1430 price zone."

Support levels: 1.1490 1.1460 1.1430

Resistance levels: 1.1520 1.1575 1.1620

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

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