- Market participants await the outcome of the FOMC meeting.
- The momentum of losses in the US dollar continues to keep the pair lateralized.
- The EUR / USD remains in the consolidation range between 1.1715 and 1.1750.
The pair EUR/USD It raced to 1.1744, hitting a new daily high and quickly fell back to 1.1730, staying in the two-day range between 1.1715 and 1.1750 ahead of the FOMC statement. The bullish move came amid an improvement in risk appetite.
Stock prices on Wall Street are trading higher. The Dow Jones is up 1.20% and the Nasdaq up 0.80%. Prices soared recently, prompting a downward movement of the US dollar across the board.
Despite hitting new highs, the EUR / USD continues to move within the 1.1715-1.1750 range. Key support is at 1.1700, and below that is the August low at 1.1662. On the upside, the immediate strong barrier is the 1.1750 / 55 band; followed by 1.1780 and 1.1805.
Waiting for the Fed
Market participants await the statement from the Fed to be released at 18:00 GMT. No rate changes are expected and clues about the purchasing program will likely be the key. Jerome Powell will hold a press conference at 18:30 GMT. New economic and interest rate projections will also be released.
“This is about the Fed as the markets prepare for this key meeting. While we do not expect a taper announcement or a change in the midpoint charts, we believe the risk is leaning towards a more aggressive result. The dollar rally ahead of the Fed from last week suggests that a hawk risk may have been valued, but we think it will be difficult to leave a dovish impression as Powell will likely shed more light on tapering and the low bar will shift from median. high on the dot chart, “explained TD Securities analysts.