EUR/USD today: the euro is growing on the weakness of the dollar

Wednesday trades remain positive for the euro due to the weakening of the US currency on the reduce the likelihood of the US Federal Reserve rates hike, the results of which will be published today. Previously, criticism from US President D. Trump was a reason for reducing the likelihood of an increase in US rates. In addition to the weakness of the dollar, the euro is supported by a decline in the British pound on Brexit risks, which remain the main risk factor for the British economy.

Events for today:

• 15:30 – current account balance (Q3) in the United States will be publish.
• 17:00 – data on existing home  sales in the United States (November).
• 17:30 – a report on oil inventories in the United States will be released.
• 21:00 – the US Fed meeting results will be published : FOMC economic forecasts, FOMC statement and the Fed interest rate decision.
• 21:30 – FOMC press conference will be held.

The main event of the day and week is waiting for the results of the US Federal Reserve meeting, which will be expected to raise rates by 25 b.p. and hints about the future of rate hikes in the United States. But, after Trump’s criticism of the Fed, there is no doubt that the Fed will stop tightening monetary policy. The question that remains open is whether the Fed will raise rates in December and how many raises will be planned in 2019.

The EUR/USD pair continues to be strengthened on pessimism on the US dollar. Prior to the publication of the Fed’s protocol, one should expect the preservation of this dynamic, which will be limited by the pair’s overbought. The expected trading range before the release of data from the US Federal Reserve from 1.1380-60 to 1.1420-30. Further dynamics of the US dollar and the market as a whole will depend on the results of the US Fed meeting. Significant resistance levels: 1.1450, 1.1480 and 1.1500, support: 1.1360-50, 1.1320-00 and 1.1270-50.

Read also: “Divergence – common mistakes when trading”

Hanzenko Anton

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