Wednesday, 1 November 2017

EUR/USD With post FOMC bearish tunes

The US Federal Reserve decided to keep the rates unchanged, so the episode of the saga will be presented in December. On Thursday the President Trump will finally announce his favourite for the next Fed's head. The European agenda had nothing to offer today, while within USA positive economic figures were released. 
In this picture EUR/USD edged lower, but yet remained range bounded as is seen during the recent sessions. The pair is currently trading at 1.1622 with 0.2% lower for the day. 
From technical point of view, the short term outlook remains bearish. On the four hour time frame  the price has crossed to below all its moving averages, having  bearish 100-day and 200-day SMAs and the 20-day SMA is staying flat, few pips above the current price. 
RSI is slightly below its mid-line and has lost directional strength. Stochastic is displaying strong bearish momentum and is aiming sounth. 
Immediate support is seen at 1.1575 (the October’s low) and in case of breaking it to below, doors are opened for testing 1.1540. Looking to the upside, first challenge for the bull is located at 1.1670 (the upper side of the recent range) and next is presented by the psychological level at 1.1700.
However, EUR/USD will be trilled by Trump’s decision on next Fed’s head and grennback’s reaction. 





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