|Day's range||1.123 - 1.126|
|52-week range||1.1110 - 1.1815|
The German PPI reported -0.1% over 0.2% forecast, lowering investor interest. Following some astounding reports, the GBP/USD pair skyrocketed 0.73% touching 1.2636 marks.
The Euro has done very little during trading on Wednesday as we continue to hover around the 1.12 handle. Because of this, the market looks very likely to favor a lot of back and forth until we get that announcement.
The Dollar index appears to be carving a path back down towards the psychological 97 handles, having been in a holding pattern in the hours leading up to the Federal Reserve’s policy announcement.
Based on the current price action, the direction of the EUR/USD on Wednesday is likely to be determined by trader reaction to the uptrending Gann angle at 1.1202. It’s a wide range, but look for an upside bias to develop on a sustained move over the 50% level at 1.1227. Watch for a downside bias to develop on a sustained move under 1.1185.
Tensions around trade wars subsided following news reports that both the US and China leaders are set to hold an ‘extended meeting’ next week at the G20 summit in Osaka, Japan.
Sellers have dominated EUR/USD for much of the first half of the month. The highly anticipated Fed meeting, scheduled later today, stands to change that, however, the bar has been set high.
It’s all eyes on the FED later in the day as the Asian markets respond to news of Trump and Xi’s planned G20 Summit meeting.
The RBA policymakers mentioned that the Bank would opt for reducing the interest rates again. German ZEW Survey June Economic Sentiment data shocked market reporting -21.1 points.
The Euro went all over the place after the ECB sounded a bit more dovish during the Tuesday session. This of course has a lot of traders out there wondering about monetary policy, but don’t worry there is even more drama head as the Federal Reserve will have its announcement on Wednesday.
Based on the early price action and the current price at 1.1203, the direction of the EUR/USD the rest of the session is likely to be determined by trader reaction to the short-term Fibonacci level at 1.1199 and the uptrending Gann angle at 1.1197.
ECB President Draghi’s speech today triggered a sharp fall in EUR/USD to a two week low. The pair has broken below some significant support although candles closes on the higher time frames are needed for confirmation.
“Further cuts in policy interest rates and mitigating measures to contain any side effects remain part of our tools. And the APP (asset purchase program) still has considerable headroom,” he added.
There have been arguments that traders have now pre-positioned portfolios, and happy to drift into the menagerie of central bank speakers this week.
The RBA talks of further rate cuts as the UK Tory Party Leadership race heats up. Stats out of the Eurozone will also be relevant later this morning.
The USD Index started losing shine after the release of the June NY Empire State Manufacturing Index. Cable remained fragile throughout the day as Britishers continued to fear over a Hard Brexit.
Based on the current price at 97.020, the direction of the September U.S. Dollar Index into the close is likely to be determined by trader reaction to the Fibonacci level at 97.020.
Tensions are running high across the pond as the highly anticipated Fed rate cuts loom over what has already been a testing time for the USD.
The Euro bounced a bit on Monday, using the 1.12 level as support. This of course is an area that should attract a lot of attention, especially considering how the area recently had been resistance. Overall, the pair looks as if it’s trying to find a longer-term bottom.
Based on the early price action, the direction of the EUR/USD the rest of the session is likely to be determined by trader reaction to the support pivot at 1.1228 to 1.1227.
After a sharp fall on Friday, EUR/USD is seen consolidating near its 200-period moving average on a 4-hour chart. All eyes will be on the Fed meeting later this week. Ahead of it, the pair has some potential to bounce higher.
Today’s positive US data seemed to mitigate the speculations over a probable Fed rate cut. Fiber dropped 0.66% reaching near 1.1214 levels amid Greenback upsurge and weak German & Italian data.
The Euro initially shot higher during trading on Friday, but then pulled back a bit to show signs of weakness again. Ultimately, we are testing a major support level underneath so it’s likely that we continue to see volatility.