- Euro maintains the bias in favor against the dollar, but limited.
- FOMC meeting begins, no changes expected.
The EUR / USD rebound from the day’s lows at 1.2055 extended to 1.2092, where it lost steam. The pair then retraced to find support in the zone of the 20 hour moving average at 1.2075. It operates practically unchanged from Monday’s close, unable to return above 1.2100, but at the same time with limited losses.
In the last hour the dollar got against the downward trend. In the bond market, yields are moving sideways, without great variations. Ditto for Wall Street futures, which is pointing to a mixed-ground opening.
Market attention is focused on the two-day meeting of the Federal Reserve, which starts today. The decisions will be known on Wednesday. No changes are expected, but the tone and words of Jerome Powell, the central bank president will be important.
The eyes are also on what the bond market is doing, which has a high impact on currencies. The 10-year rate moves a small range Tuesday around 1.57%.
Bullish but limited
The EUR / USD remains on a firm bullish bias, albeit unable to return above 1.2100. If successful, the focus will shift to Monday’s highs at 1.2115; Above the next resistance can be seen at 1.2145.
In the short term, a confirmation below 1.2050 would weaken the euro, favoring an extension of the downward correction. The next support can be seen at 1.2035 and 1.2000 / 1.1990.
Technical levels
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