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FOREX: EURUSD Recovery Remains Intact as Fed Decision Hangs in Balance

FOREX
BulletMarketsForeign Exchange Bullets
  • EURUSD has traded within a confined range (1.1110/40) over the past two sessions as markets await the outcome of today’s FOMC rate decision and release of the summary of economic projections.
  • Overall, the pairs recovery remains intact and the consolidation at elevated levels broadly reflects the USD index holding close to the year’s lows, which would represent a near 14-month low for the index.
  • Further pressure on the greenback would likely prompt a test of the Sep 06 high in EURUSD, further cementing the bullish recovery and highlighting scope for a stronger recovery towards 1.1202, the Aug 26 high. This level represents the bull trigger and above here, the market would turn its focus to 1.1276, the July 18 high from last year.
  • A more hawkish outcome from the Fed would instead refocus attention on 1.1002, the Sep 11 low.
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  • EURUSD has traded within a confined range (1.1110/40) over the past two sessions as markets await the outcome of today’s FOMC rate decision and release of the summary of economic projections.
  • Overall, the pairs recovery remains intact and the consolidation at elevated levels broadly reflects the USD index holding close to the year’s lows, which would represent a near 14-month low for the index.
  • Further pressure on the greenback would likely prompt a test of the Sep 06 high in EURUSD, further cementing the bullish recovery and highlighting scope for a stronger recovery towards 1.1202, the Aug 26 high. This level represents the bull trigger and above here, the market would turn its focus to 1.1276, the July 18 high from last year.
  • A more hawkish outcome from the Fed would instead refocus attention on 1.1002, the Sep 11 low.