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EUR/USD rises modestly to 0.9900 area with eyes on the Fed

  • The dollar falls slightly before data and the Fed.
  • Great expectation around the statement to be issued by the Fed.
  • EUR/USD with support at 0.9835, 20-day moving average.

The EUR/USD is trading modest gains on Wednesday ahead of US jobs data and the Federal Reserve decision. The pair posted a daily high at 0.9912 and then pulled back to the 0.9900 area. The short-term bias is bearish and more volatility is expected ahead.

In a few minutes the ADP employment report will be published, which is expected to show an increase in private payrolls of 195,000. In the Eurozone, the final reading of the S&P Global Manufacturing PMIs was released, most of which were revised downwards from the preliminary reading.

The key event on Wednesday will be the culmination of the two-day FOMC meeting. The Federal Reserve is on track to make the sixth rate hike in a row. The market’s eyes are on the future trajectory and if it is, it will be the last rise of 75 basis points. At 18:00 GMT the decision will be published and half an hour later will be the press conference of Jerome Powell.

What the Fed does will have a great impact on the markets and could mark the direction of the dollar in the coming sessions. On Wednesday the greenback fell modestly ahead of the Fed and the data. Treasury yields are up marginally, with the 10-year note yielding more than 4% and the 2-year rate above 4.50%.

Support at the mean of 20

EUR/USD’s retracement from above parity levels found support on Tuesday at the 20-day moving average, which is flat at 0.9835/40. A firm break below would enable further downside, with next support at the 0.9755 area.

In the opposite direction, resistance is located at 0.9950/55, followed by 1.0015 and 1.0050. Above that the next strong and key level is the October high around 1.0100.

Technical levels

EUR/USD

Panorama
Last Price Today 0.9897
Today’s Daily Change 0.0014
Today’s Daily Change % 0.14
Today’s Daily Opening 0.9883
Trends
20 Daily SMA 0.9838
50 Daily SMA 0.9886
100 Daily SMA 1.0072
200 Daily SMA 1,049
levels
Previous Daily High 0.9954
Previous Daily Minimum 0.9853
Previous Maximum Weekly 1.0094
Previous Weekly Minimum 0.9807
Monthly Prior Maximum 1.0094
Previous Monthly Minimum 0.9632
Daily Fibonacci 38.2% 0.9892
Daily Fibonacci 61.8% 0.9916
Daily Pivot Point S1 0.9839
Daily Pivot Point S2 0.9795
Daily Pivot Point S3 0.9738
Daily Pivot Point R1 0.9941
Daily Pivot Point R2 0.9998
Daily Pivot Point R3 1.0042

Source: Fx Street

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