- The dollar gains moment before the American session and US data.
- EUR / USD reverts after approaching 1.2150 and is now targeting 1.2100.
- The focus is also on the Federal Reserve meeting.
The The dollar gained momentum in the last hours and went to positive territory against most of its rivals. EUR / USD had hit new two-day highs, just below 1.2150, and recently hit daily lows at 1.2111.
The pair is trading around 1.2115 / 20, in the zone where it closed on Monday. The common currency could not confirm the rise and the subsequent recovery of the dollar shows that it is still strong in the pre-event of major events.
The EUR / USD’s very short-term trend is not clear, but upside difficulties are still present and a bearish bias has dominated since the beginning of this month. The 1.2100 zone looks vulnerable to the downside. At the 1.2200 zone, which in addition to being a horizontal resistance, is passing the 20-day average, this implies that a daily close clearly above it could negate the bearish bias.
Looking ahead to the next few hours, volatility is expected to continue to be present and at risk of jumps. This is the case since the US retail sales and wholesale inflation data will be released on Tuesday (12:30 GMT), which may influence the formation of expectations for the most important event of the week: the meeting of the Federal Reserve.
The central bank’s decision will be known on Wednesday. Changes are not expected but everything revolves around what they say about the shopping program and the clues to the future.
Technical levels
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