EUR/USD today: the market is waiting for Fed statements
On Tuesday, the EUR/USD pair closed the day with restrained growth with a maximum test at 1.1790. The maximum of Monday at the same time remained unattainable for the euro at the level of 1.1820, starting from the American session on Tuesday, the market moved to the waiting positions, thus causing the formation of a side channel for this pair and for the US currency in general.
Events for today:
- 11:30 – gross mortgage approvals in the UK.
- 17:00 – data on real estate in the US: new home sales (Aug) and new home sales (m / m) (Aug).
- 17:30 – oil inventories report in the US.
- 21:00 – US Federal Reserve meeting minutes: FOMC economic projections, FOMC statement and Fed interest rate decision.
- 21:30 – FOMC press conference will be held.
The expectation of the US Federal Reserve meeting results remains the main event of the day. It is expected to raise the key rate to 2.25%. And this fact the market has already considered in the US dollar value. The intrigue remains the decision on the further fate of the rates this year and if the Fed signals about another rate hike, the American dollar will get support.
The EUR/USD pair is limited to the trading range from 1.1780-90 to 1.1760-50, before the release of the Fed data. After this, we expect growth in volatility, depending on the US Federal Reserve meeting results and a further press conference. Support levels for today: 1.1750-30, 1.1700 and 1.1680, resistance: 1.1800, 1.1820 and 1.1850-60.
Read also: “Features of Trade on the Bollinger Lines”
Hanzenko Anton
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