Yahoo Finance EUR/USD Daily Price Forecast – EUR/USD Takes A Dovish Turn Ahead of US FOMC Update
The EUR/USD pair peaked at a fresh weekly high of 1.1620 yesterday, but once again, was unable to hold on to gains above the 1.1600 figure, settling a few pips below the level at the end of the US session. The dollar remained weak amid a better market mood, which resulted in most major indexes ending the day in positive ground. But the US Greenback picked up momentum in Asian market hours and the bid tone around the US dollar continues to keep growing bigger heading into the early European trading, keeping the EUR/USD pair near the lower bound of today´s trading range below the 1.16 handle. The immediate focus now remains on the Eurozone final CPI figures due at 0900 GMT.
European Macro Data to Provide Directional Strength Ahead of US FOMC Update
The common currency continues to remain undermined by downbeat Eurozone economic news after the ZEW survey showed worsening business sentiment across the Euro area amid the Italian budgetary concerns and looming trade tensions. As of writing this article, EURUSD pair is trading at 1.1558 down by 0.14% on the day. Meanwhile, the divergent monetary policy outlooks between both continents remain USD-positive, especially with the minutes of the Sept Fed monetary policy meeting likely to show that the Fed remains on track for four rate hikes next year. Also, stronger US fundamentals and a solid performance on the Wall Street overnight lift the sentiment around the greenback.
Meanwhile on the other side of Atlantic, aside from FOMC update US market will also see release of Housing starts and building permits data and also Crude oil Inventory data. When looking at pair from technical standpoint, In the 4 hours chart, a bullish 20 SMA converges with a bearish 100 SMA a couple of pips below the current level, and around the 38.2% retracement of the same decline, reflecting the absence of directional strength. The Momentum indicator advances around its mid-line, while the RSI indicator continues consolidating around 58, leaning the risk to the upside, despite the lack of directional momentum. Expected support and resistance for the pair are at 1.1550, 1.1530, 1.1500 and 1.1620, 1.1660, 1.1700 respectively.
This article was originally posted on FX Empire
