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29 Jan 2014
FOMC gravity force pushes EUR/USD lower
FXstreet.com (Moscow) - EUR/USD is under mild pressure from the early morning starting the day at 1.3668 and reaching 1.3647 session low by the moment.
EUR is doomed to go south
The nearer the FOMC meeting, the stronger the USD, putting the pair under a mild pressure. The EMU economic calendar gives only second and third tier data, thus we don’t expect any significant movements during European session. The peak volatility we will see during late American session, when Bernanke gives his last speech as a chairman, and makes his last changes to the monetary policy. We don’t think the recent emerging markets turmoil will affect the FOMC sentiment, thus another reduction is quite possible. This will put the pair under pressure with initial target at 1.3601 support level.
What are today’s key EUR/USD levels?
Today's central pivot point can be found at 1.3662, with support below at 1.3636, 1.3601 and 1.3575, with resistance above at 1.3697, 1.3723, and 1.3758. Hourly Moving Averages are largely bullish, with the 200SMA at 1.3611 and the daily 20EMA flat at 1.3640. Hourly RSI is neutral at 44.
EUR is doomed to go south
The nearer the FOMC meeting, the stronger the USD, putting the pair under a mild pressure. The EMU economic calendar gives only second and third tier data, thus we don’t expect any significant movements during European session. The peak volatility we will see during late American session, when Bernanke gives his last speech as a chairman, and makes his last changes to the monetary policy. We don’t think the recent emerging markets turmoil will affect the FOMC sentiment, thus another reduction is quite possible. This will put the pair under pressure with initial target at 1.3601 support level.
What are today’s key EUR/USD levels?
Today's central pivot point can be found at 1.3662, with support below at 1.3636, 1.3601 and 1.3575, with resistance above at 1.3697, 1.3723, and 1.3758. Hourly Moving Averages are largely bullish, with the 200SMA at 1.3611 and the daily 20EMA flat at 1.3640. Hourly RSI is neutral at 44.