28 Apr 2014
EUR/USD approaching 1.3850 offers, FOMC eyed
FXStreet (Bali) - EUR/USD is currently trading near the upper end of its day range at 1.3840, with strong selling still expected as bids approach 1.3850.
Focus for this week is going to be on Wednesday's FOMC meeting and Friday's US NFP. With regards to the Fed's monetary policy decision, tapering of an additional $10 bln a meeting pace is expected, "as the economy is behaving largely in line with the FOMC's expectations, though the weakness in the housing market is genuinely disappointing", notes Marc Candler, Head of FX at BBH.
Chandler added: "It is generally accepted that the first Fed hike is still more than a year off. The next FOMC meeting (June) will be more important than this week's meeting, which may be as close to a non-event as these things can be. Forecasts will be updated, and Yellen will hold a press conference June."
Technically, Valeria Bednarik, Chief Analyst at FXStreet, notes: "The hourly chart shows price within range albeit finding short term support around a slightly bullish 20 SMA, while indicators aim higher above their midlines."
"In the 4 hours chart technical readings maintain a pretty neutral stance, with immediate resistance still at 1.3860: gains above this last may trigger some stops and favor a run higher, although gains beyond 1.3920 should not be expected for today", Bednarik added.
Focus for this week is going to be on Wednesday's FOMC meeting and Friday's US NFP. With regards to the Fed's monetary policy decision, tapering of an additional $10 bln a meeting pace is expected, "as the economy is behaving largely in line with the FOMC's expectations, though the weakness in the housing market is genuinely disappointing", notes Marc Candler, Head of FX at BBH.
Chandler added: "It is generally accepted that the first Fed hike is still more than a year off. The next FOMC meeting (June) will be more important than this week's meeting, which may be as close to a non-event as these things can be. Forecasts will be updated, and Yellen will hold a press conference June."
Technically, Valeria Bednarik, Chief Analyst at FXStreet, notes: "The hourly chart shows price within range albeit finding short term support around a slightly bullish 20 SMA, while indicators aim higher above their midlines."
"In the 4 hours chart technical readings maintain a pretty neutral stance, with immediate resistance still at 1.3860: gains above this last may trigger some stops and favor a run higher, although gains beyond 1.3920 should not be expected for today", Bednarik added.