- Euro continues with moderate recovery against the dollar.
- Stock markets rebound from Monday’s declines, supporting EUR / USD.
- The two-day meeting of the Federal Reserve begins.
The EUR / USD is rising after three days of declines and after hitting weekly lows at 1.1699. The price rose to 1.1739 in Asian hours and is close to that area again, after having fallen to 1.1717. A bearish correction in the dollar is keeping the pair with a slight intraday bullish bias.
The greenback shows negative results on Tuesday after hitting a month-high on Monday against most of its rivals, driven by the decline in stocks around the world. Today equity markets are recovering after Monday’s hit.
The focus shifts to what the Federal Reserve can say on Wednesday, following the conclusion of the two-day FOMC meeting that is about to begin. Regarding data, they will be published on Tuesday of the beginning of housing and current account, which should not have a great impact.
EUR / USD with resistance at 1.1740
The EUR / USD is still under dominant downward pressure but in the very short term, it is still showing positive signals. The rebound of the pair has slowed for the moment around 1.1740 which is the resistance to overcome and where the average of 20 is passing in four hours. A rally above could give the euro more momentum, although the next resistance quickly appears at 1.1750 and then 1.1785.
In the opposite direction, if it affirms below 1.1720, the very short-term bias will again be bearish, exposing the 1.1700 support. A fall below this last level could generate an acceleration in the routes. The next target below is at the August low at 1.1663, with intermediate support at 1.1690.