- The EUR/USD is on the hunt for an upside that will allow it to reclaim the 1.0700 area ahead of the mid-week Fed meeting.
- The Dollar has beaten the Euro for nine consecutive weeks, and bidders will be looking for a point of support.
- EU and US economic data will cap the trading week.
The pair EUR/USD starts the week on the rise, recovering the ground lost last week.
The Euro (EUR) managed to rally against the Dollar (USD) on Monday after opening the day near 1.0668, and the pair is currently topping out near 1.0700.
Fed rates will be announced on Wednesday
It will be a dollar-dominated week for EUR/USD, with a notably thin economic calendar for the European Union (EU), and the Federal Reserve (Fed) scheduled for another rate call mid-week.
The Fed is expected to keep interest rates at 5.5%, but investors will be keeping an eye on the Fed’s dot plot and inflation expectations, as well as any future indications during the Federal Market Committee press conference. Open (FOMC). The Fed’s interest rate decision will be announced on Wednesday at 18:00 GMT, while the press conference will take place half an hour later, at 18:30.
Initial US jobless claims for the week to September 15 will be released on Thursday at 12:30 GMT, followed by preliminary Consumer Confidence figures at 2:00 p.m. The latest US jobless claims figure was 220,000, while EU consumer sentiment is expected to decline slightly from -16 to -16.5 points.
Both releases are expected to have a medium impact and market participants will mainly focus on Friday’s Purchasing Managers’ Indices (PMI) for both the EU and the US.
The EU Composite PMI, due early Friday at 08:00 GMT, is expected to decline slightly from 46.7 to 46.3, while similar data is expected in the United States at 13:45 GMT. The US Manufacturing PMI is estimated to fall from 47.9 to 47.8, while the services component will drop to 50.3 from 50.5.
EUR/USD Technical Outlook
Euro bulls will look to mark a week higher after the EUR/USD pair has closed lower for the last nine consecutive weeks, and daily candlesticks have the pair firmly lower.
The 200-day SMA is above current prices, parked near 1.0830, and the 34-day EMA has given a bearish crossover, gaining bearish momentum towards 1.0800.
Both the relative strength index (RSI) and the moving average convergence-divergence (MCAD) are at lows, which implies oversold, and the bulls stand to lose if the Federal Reserve gives any surprise that could push the dollar up.
EUR/USD Daily Chart
EUR/USD technical levels
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
