- Slight dollar weakness boosts EUR / USD.
- Market waiting for the Fed meeting, but before relevant data from the US.
The EUR / USD is rising in the first half of Wednesday, although still unable to recover the 1.1600 area. It recently peaked for the day at 1.1597, then fell back to 1.1575 and is close to the daily peak again, on a day that, prior to key events, has limited runs.
The particular issues of the euro are to be expected to remain in the background for the next few hours and that the routes will be defined by the dollar. The most relevant event will be the Federal Reserve statement in the American afternoon. An announcement regarding the purchasing program is expected. The aforementioned along with the words of the Fed chairman, Jerome Powellis expected to have a high impact on financial markets.
Before the Fed, key data from the services sector will be released, as well as the private employment report from ADP. The busy economic calendar will continue until Friday, when the official employment report is released.
Short-term outlook
The EUR / USD reaches the first event of the day, the ADP report, trading sideways with a slightly bullish bias in the very short term. To the upside, it faces resistance at 1.1600 and then 1.1610 (November 2 high) and 1.1625. If the latter is overcome, the bullish tone would gain momentum and could lead to an advance towards 1.1665.
On the downside, the first relevant support is at 1.1575, followed by 1.1545, which is the last protection for an October floor test at 1.1520 / 25.
Technical levels
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