EURUSD pair stays steady near 1.0680, with the FOMC. Investors are most likely keeping their dollar holdings until US Fed event
EURUSD Key Points in Perspective
The EURUSD is struggling to recoup its losses of late due to market trepidation before of the Fed announcement.
The MACD indicator gives a bullish indication for probable price rise.
The psychological threshold of 1.0650 appears as the primary support, next to the prior week’s bottom.
EURUSD is Trading Sideways
Current Trading Price
1.0695+0.0018(+0.17%)
Over the Asian trading on Wednesday, the EURUSD strives to recoup some of the prior day’s declines. Trading near 1.0680. The currency pair is trading flat amid market trepidation in advance of the US Fed’s meet. Which is set to be released at the end of the American afternoon.
The psychological threshold of 1.0650 looks to be the primary support for the EURUSD set. Next to last week’s bottom of 1.0631.
If negative mood persists to apply stress. The exchange rate may hit the subsequent support level near the vital psychological threshold of 1.0600 zone
The US Fed’s Powell are in the spotlight.
On Wednesday, the Federal Reserve will announce its rate of interest decision plus FOMC economic estimates. Through markets expecting the Fed to take a break, the attention is going to be on the forecasts as well as Fed Chair.
Positive adjustments to the economy, joblessness, and inflation numbers would drive betting on a Fed rate move in Nov. An increasingly aggressive Fed monetary policy path may also diminish the likelihood of a Fed reference rate drop in 2024.
On the other hand, Europe’s economy is in danger of entering an economic slump. A downturn would require the ECB to lower interest rates early than expected in order to assist an economic rebound.
EURUSD Technical Analysis and Outlook
On the upward trajectory, the EURUSD duo may encounter resistance at the psychological mark of 1.0700. Pushed by the 12-day (EMA) around 1.0713 level.
A strong breach over the latter level might allow the duo to look into the zone close to the 21-day EMA around 1.0754. Which is connected with the 23.6 percent retracement of Fibonacci at 1.0783.
Its (MACD) point is still lower than the center point but higher than the signal bar. This arrangement suggests that this more immediate moving average is going further up. Versus the more long-term MA, indicating possible price growth.
Nevertheless, the EURUSD pairing is under downward pressure as the 14-day RSI (RSI) is under the 50 mark.
Fundamental Factors
The Euro recovers from a decline against the US Dollar on Tuesday.
European stocks began Wednesday’s trading with solid gains.
EURUSD is still trading under the 1.0700 level.
So far, the (DXY) has remained around its low of 105.00s.
The Fed is anticipated to leave interest rates unaltered at its meeting.
Weekly MBA Mortgage Applications are now expected later this week.
Panetta, Enria, Schnabel, Jochnick, Mc Caul, and Elderson of the the European Central Bank are scheduled to give speeches.
Current Price Trend Summary
Investors will probably be hanging on with their Dollar holdings before of the Fed’s expected aggressive hold. Amid the dangers of 2024 dot plot adjustments – implying that the currency pair could be limited through this evening’s risky encounter.
The US dollar remains in command, both monetary regulation and economic dispersion tilting in its support. To sustain the present EURUSD trend, the FOMC forecasts must give bullish signs.
