EUR/USD Mid-Session Technical Analysis for September 16, 2020
The Euro is moving higher against the U.S. Dollar on Wednesday on expectations the Federal Reserve will maintain its downbeat stance on the U.S. economy as it grapples with the COVID-19 pandemic, and keep U.S. interest rates near zero for some time.
The Fed, which began a two-day meeting on Tuesday, is expected to affirm its current zero-interest-rate policy over the next three years, a view that could further weigh on the dollar.
The early price action suggests analysts do not expect a rate hike view from the Fed on Wednesday, but if it does happen, that could be a positive for the dollar.
Some traders will be centering their attention on whether the Fed sees a rate hike in 2023. The Euro could strengthen against the U.S. Dollar if the Fed projects no rate hikes. If they put a rate hike in there, pressure could be felt by equities and commodities, and the U.S. Dollar would likely rally.
Daily EUR/USD
Daily Swing Chart Technical Analysis
The main trend is down according to the daily swing chart, however, momentum is trending higher. A trade through 1.1753 will signal a resumption of the downtrend. A trade through 1.2011 will change the main trend to up.
The minor trend is up. This is controlling the upside momentum.
The minor range is 1.1753 to 1.1917. Its retracement zone at 1.1835 to 1.1816 has held as support the last four sessions.
The short-term range is 1.2011 to 1.1753. Its retracement zone at 1.1882 to 1.1912 has been providing resistance since September 10.
Daily Swing Chart Technical Forecast
The tight trading range the last four sessions suggests the EUR/USD is set-up for a breakout. The direction will be determined by trader reaction to the Fed announcements.
The early sign of a move will be determined by 50% levels. A pair of Fibonacci levels may be the actual trigger points for the breakouts.
Bullish Scenario
A sustained move over 1.1882 will indicate the presence of buyers. Taking out 1.1912 could trigger an acceleration to the upside.
Bearish Scenario
A sustained move under 1.1835 will signal the presence of sellers. A drive through 1.1816 could trigger an acceleration to the downside. #EUR/USD##FX#
Reprinted from FXEmpire,the copyright all reserved by the original author.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
FOLLOWME Trading Community Website: https://www.followme.com
Hot
No comment on record. Start new comment.