- 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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