27 Apr 2016
EUR/USD wavers around 1.1300 in early Europe, Fed eyed
EUR/USD is seen reversing a spike to daily tops and slips back below 1.13 handle in early trades, as the USD bulls jump back on the bids heading into the Fed verdict due later today.
EUR/USD revisits daily lows
Currently, EUR/USD trades almost unchanged at 1.1298, unable to hold into gains above 1.13 handle. The main currency pair is struggling hard to keep the bids, but in vain, as the US dollar is gradually picking-up pace against its major peers, as focus shifts towards the Fed monetary policy decision due later in the NY session.
However, the downside remains restricted on the back of a cautious tone persisting across the financial markets, as traders remain wary and refrain from placing directional bets on the major ahead of the FOMC statement, which is likely to spur volatility into markets and could trigger extreme USD price action.
The Fed is widely expected to keep interest rates on hold but markets will be closely eyeing the statement for hints of when the committee will announce its second rate hike since the first hike in December.
EUR/USD Technical Levels
In terms of technicals, the pair finds the immediate resistance at 1.1334/39 (Apr 18 & 26 High). A break beyond the last, doors will open for a test of 1.1396/1.1400 (Apr 21 High/ round number). On the flip side, the immediate support is placed at 1.1277 (1h 50 & 100-SMA) below which at 1.1232/19 (Apr 14 & 25 Low) could be tested.
EUR/USD revisits daily lows
Currently, EUR/USD trades almost unchanged at 1.1298, unable to hold into gains above 1.13 handle. The main currency pair is struggling hard to keep the bids, but in vain, as the US dollar is gradually picking-up pace against its major peers, as focus shifts towards the Fed monetary policy decision due later in the NY session.
However, the downside remains restricted on the back of a cautious tone persisting across the financial markets, as traders remain wary and refrain from placing directional bets on the major ahead of the FOMC statement, which is likely to spur volatility into markets and could trigger extreme USD price action.
The Fed is widely expected to keep interest rates on hold but markets will be closely eyeing the statement for hints of when the committee will announce its second rate hike since the first hike in December.
EUR/USD Technical Levels
In terms of technicals, the pair finds the immediate resistance at 1.1334/39 (Apr 18 & 26 High). A break beyond the last, doors will open for a test of 1.1396/1.1400 (Apr 21 High/ round number). On the flip side, the immediate support is placed at 1.1277 (1h 50 & 100-SMA) below which at 1.1232/19 (Apr 14 & 25 Low) could be tested.