EURUSD might stay around the 1.0850 level, up until the FOMC, On Monday. The EURUSD pair closed in the red and appears to have entered a consolidation phase near 1.0850. Analysts anticipate that this level will remain the pair’s trading range.
EURUSD Pair: Going into the FOMC meeting, the dollar may continue to be largely supported.
Going into the FOMC meeting, the dollar may continue to be largely supported. Considering the shift in the eurozone’s inflation story, which can undoubtedly fuel ECB hardline speculation, the Euro, however, may demonstrate greater durability than other G10 peers (particularly high currencies).
After hitting a 20-year bottom in last September, the Euro is steady heading into the European session today and aims to record a fourth consecutive monthly rise.
The surge has been aided by thoughts that the Federal Reserve could be less aggressive in its tightening program, which has resulted in the US Dollar falling out of favor overall.
The European Central Bank’s (ECB) intensified fight against inflation has also helped the EURUSD trend higher.
The Fed will adjust its stance Wednesday, and the ECB will do the same thing on Thursday. Markets are pricing in increases of 25 and 50 basis points (bp), accordingly.
EURUSD may stay close to the 1.0850 handle.
Additionally, current gas price projections anticipate TTF to remain below 80 EUR/MWh till 2023. In the near term, this is a situation that is positive for the eurozone and the euro.
TECHNICAL EXAMINATION
This month, the EURUSD reached a nine-month high at 1.0927, falling just short of the historically significant resistance levels of 1.0936 and 1.0945, which represent a breakpoint and preceding peak, accordingly. These tiers can still present resistance.
With the exception of the 10-day SMA, the price is nearly in line with other period simple moving averages (SMA). Bullish momentum could develop if the price makes a comeback above it.
The prior declines and breakpoints of 1.0787, 1.0774, 1.0766, and 1.0736 may provide support on the negative.
