- The US dollar gains momentum as US stocks turn negative.
- EUR / SUD finds resistance at 1.1750, bouncing lower looking at 1.1700.
- FOMC meeting begins, Wednesday’s decision could trigger volatility.
The EUR/USD encountered resistance below 1.1750 and turned lower. Over the past hour, the pair hit a fresh daily low of 1.1716. The move down took place when Wall Street turned lower and in the middle of a stronger US dollar.
Deteriorating market sentiment boosted the yen and the dollar. The Dow Jones was unable to sustain gains and lost 0.05%, and the Nasdaq 0.01%. Concerns about the impact of Evergrande’s situation weigh on the market. The company failed to make payments to two banks on Monday.
On Tuesday, US economic data beat expectations, with housing starts and building permits rising unexpectedly. The focus is on the two-day meeting of the Federal Reserve. On Wednesday, the central bank will announce its decision. No changes in rates are expected. Expectations around the QE program will be the key.
EUR / USD unable to rally 1.1750
The pair peaked at 1.1748 on Tuesday, before turning lower. As long as it is below the 20 hour moving average at 1.1730, the intraday bias will be skewed to the downside. The next critical support is seen at 1.1700, which protects the August low at 1.1662.
The euro remains under pressure and only a recovery above 1.1820 would ease the pressure. In the very short term, above 1.1730, the euro could rise again to test 1.1750; Above the next resistance you can see 1.1780.
Technical levels
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