18 Jun 2014
EUR/USD reaches daily highs, Fed eyed
FXStreet (Córdoba) - The EUR/USD gathered momentum during the European session and advanced to fresh daily highs, trimming previous day losses, as investors gear up for the Federal Reserve policy decision.
The EUR/USD managed to recoup ground Wednesday and is up on the day after falling the previous day as the greenback was underpinned by higher-than-expected US inflation data. However, the pair found support at the 1.3535 area and turned higher also helped by a bounce in Eurozone’s construction output.
At time of writing, the EUR/USD is trading at the 1.3560 area, 0.11% above its opening price, having hit a daily high of 1.3564 in recent dealings.
EUR/USD technical outlook
“EUR/USD's bullish intraday reversal on 5 June has created a key support at 1.3503. In the short-term, prices are moving sideways near this level”, said Luc Luyet, analyst at Swissquote Bank SA. “However, a short-term bearish bias is favoured as long as prices remain below the hourly resistance at 1.3602 (10/06/2014 high). Another resistance stands at 1.3677 (06/06/2014 high)”.
“Today's FOMC meeting is likely to determine the direction of the next short-term trend”, said the analyst.
The EUR/USD managed to recoup ground Wednesday and is up on the day after falling the previous day as the greenback was underpinned by higher-than-expected US inflation data. However, the pair found support at the 1.3535 area and turned higher also helped by a bounce in Eurozone’s construction output.
At time of writing, the EUR/USD is trading at the 1.3560 area, 0.11% above its opening price, having hit a daily high of 1.3564 in recent dealings.
EUR/USD technical outlook
“EUR/USD's bullish intraday reversal on 5 June has created a key support at 1.3503. In the short-term, prices are moving sideways near this level”, said Luc Luyet, analyst at Swissquote Bank SA. “However, a short-term bearish bias is favoured as long as prices remain below the hourly resistance at 1.3602 (10/06/2014 high). Another resistance stands at 1.3677 (06/06/2014 high)”.
“Today's FOMC meeting is likely to determine the direction of the next short-term trend”, said the analyst.