|Day's range||1.18 - 1.186|
|52-week range||1.0348 - 1.2093|
The market yesterday was bit volatile as it tried to build some support area around the region ahead of the crucial Fed rate hike policy decision. Now, the Fed has hiked the interest rate by 25 basis points and is more hawkish on the future rate hike, the market is expected fall lower towards the 1.17 level. The market was very noisy ahead of the Fed rate hike policy decision in Wednesday’s session, as it rallied towards the 1.34 level with a support of 1.33 level.
The EUR/USD pair continues to very noisy, rallying slightly during the trading session on Wednesday as we await the Federal Reserve interest rate statement.
The euro gained due to the weakness of the dollar following a dovish Fed which hiked rates but sounded dovish for further hikes in 2018
Based on the early action, trader reaction to the downtrending Gann angle at 1.1780 will determine the direction of the EUR/USD the rest of the session.
The volatility in the counter is mainly due to the Federal Reserve releasing its interest rate hike announcement later in the day today. A hawkish outlook will make this market to fall lower. This is mainly due to the Federal Reserve coming out with rate hike policy decision.
Forex has become very cautious the past day as traders await a slew of central bank announcements over the next day and a half. The Pound has been also affected by political concerns again in the U.K and Gold has essentially sat in place. The Pound has remained near the lower rungs of its short-term value as political concerns once again embattle the U.K landscape.
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The EUR/USD pair will more than likely be rather quiet initially during the trading session today, but after the Federal Reserve releases a statement, things could get interesting.
In case if the quote fails to extend latest recovery above 1.1795 mark, the 1.1750, the 1.1730-20 and the descending TL support of 1.1700 might entertain sellers. As a result, the pair’s break of 113.70 can quickly trigger its rise to downward slanting TL figure of 114.00, which if broken could further escalate the advances to 114.40 and to the November high around 114.75. Assuming the pair’s capacity to conquer the 114.75 resistance, the 61.8% FE level of 115.40 could please the Buyers.
The Euro continues to experience headwinds in the short term as traders remain cautious due to knock-on effects from the Pound as political concerns remain about the Brexit. However, the Euro is intriguing moving forward and may find buyers who believe it should be valued higher.
Based on the current price at 1.1774 and the earlier price action, the direction of the EUR/USD today will be determined by trader reaction to a pair of Gann angles at 1.1800 and 1.1803.
The mid-term is divided between green and neutral signals, and the daily outlook is back to neutral. The interbank is neutral as well at less than 11% long, matching the 1 and 24-hour models. Mid-term brings 5 sell prompts, and the long-term is split between red and neutral models.
This week will be all about the central banks. Four major institutions will have their interest rate decisions: FED, ECB, BoE, and SNB. From that four, only in US, we should see some changes. Currently, on the markets, we can see three nice trading setups:
Gold has been under pressure and continues to test important short-term support. U.S Crude Oil has been able to gain. After initially gaining in early trading on Monday, the British currency reversed lower and has maintained its weaker path against the U.S Dollar.
Markets were somewhat lackluster on Monday, and that trend appears set to continue Tuesday as traders await a host of Central Bank meetings starting on Wednesday, with the Federal Reserve expected to hike rates at their last FOMC meeting of 2017.
Effectively this market will continue to be volatile in today’s session as the outcome of FOMC meeting on rate hike will come on Wednesday. If the statement from FOMC comes little hawkish, then this market will rally further towards the 1.20 level, and then eventually at 1.21 level.
Investing.com – The dollar was mostly unchanged against a basket of major currencies on Monday after data showed US employers posted fewer job openings than expected in October, pointing to signs of possible weakness in the labor market.