News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Bullish
Oil - US Crude
Bearish
Wall Street
Bullish
Gold
Bearish
GBP/USD
Bearish
USD/JPY
Bullish
More View more
Real Time News
  • webinar starting right now - looking at 1. themes for q3 close 2. debates starting tonight, what might market ramifications be? 3. heavy week of data out of the us - $USD in the spotlight https://www.dailyfx.com/webinars/455809179 https://t.co/tZxa4c2zVl
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.20%, while traders in US 500 are at opposite extremes with 62.11%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/9tCHS7o18f
  • Heads Up:🇺🇸 Fed Williams Speech due at 17:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-09-29
  • Commodities Update: As of 16:00, these are your best and worst performers based on the London trading schedule: Silver: 1.93% Gold: 0.62% Oil - US Crude: -4.59% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/674URQqbej
  • Forex Update: As of 16:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 0.49% 🇪🇺EUR: 0.41% 🇳🇿NZD: 0.37% 🇬🇧GBP: 0.05% 🇯🇵JPY: -0.17% 🇨🇦CAD: -0.33% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/NLmATP58eY
  • Trader confidence is relatively buoyant in the currency markets, benefiting FX pairs such as EUR/USD, GBP/USD and AUD/USD at the expense of the safe-haven US Dollar. Get your market sentiment update from @MartinSEssex here: https://t.co/ir7hXNfxec https://t.co/2IwbcrkrM5
  • Join @JStanleyFX 's #webinar at 1:00 PM ET/5:00 PM GMT for his weekly update on trading price action. Register here: https://t.co/ZCcMdyaTsB https://t.co/xn5x2AG5vI
  • Indices Update: As of 16:00, these are your best and worst performers based on the London trading schedule: FTSE 100: -0.16% Germany 30: -0.17% France 40: -0.17% US 500: -0.63% Wall Street: -0.81% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/z1qnxoAWz7
  • Reports of German Chancellor Merkel saying EU recovery funds will be increasingly delayed came just as $EURUSD was struggling with former support (H&S neckline) as new resistance. When fundamentals and technicals converge... https://t.co/BDvM9DXBW6
  • Heads Up:🇩🇪 Bundesbank Mauderer Speech due at 16:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-09-29
Euro Dollar Outlook: Price Action Stalls Ahead of FOMC

Euro Dollar Outlook: Price Action Stalls Ahead of FOMC

2020-08-19 11:10:00
Tammy Da Costa, Markets Writer
Share:

EUR/USD Price Analysis:

Focus turns to FOMC

After nine consecutive weeks of gains, EUR/USD price action has favored the bulls, with prices breaking above the psychological level of 1.1900, eager to test the May 2018 high. Now, as the Dollar remains under pressure, the focus turns to the economic calendar, with emphasis being placed on the Federal Open Market Committee (FOMC) minutes which will be released tonight at 18:00 GMT. Although Jerome Powell has suggested that low rates will persist for the foreseeable future, falling Treasury Yields have continued to undermine the Dollar and any mention of yield curve control may be an additional driver for price action.

Visit the DailyFX Educational Center to discover why news events are

Key to Forex Fundamental Analysis

Economic Calendar

Euro Dollar Outlook: Price Action Stalls Ahead of FOMC

For all market-moving data releases and events see the DailyFX Economic Calendar

EUR/USD Approaches Fibonacci Resistance

From a technical standpoint, the weekly chart below highlights Fibonacci levels from two major moves, the primary move (pink) which is plotted between the January 2017 low to the February 2018 high and the secondary move (orange), taken from the February 2018 high to the March 2020 low. After rebounding off of the 61.8% retracement of the primary move (1.11841), a strong upward trend has been present, with prices now looking to test the May 2018 high, at 1.19960.

Starts in:
Live now:
Sep 29
( 17:09 GMT )
James Stanley’s Webinar for US Dollar Price Action
Trading Price Action
Register for webinar
Join now
Webinar has ended

However, the 61.8% retracement of the secondary move, continues to hold as support at 1.182, while the 23.6% retracement of the primary move may keep bulls at bay as prices near the 1.200 mark.

EUR/USD Weekly Chart

Euro Dollar Outlook: Price Action Stalls Ahead of FOMC

Chart prepared by Tammy Da Costa, IG

MACD Remains Above Zero

Using a shorter time-frame, the four hour chart below indicates that the Moving Average Convergence/Divergence (MACD), a technical indicator used to determine the direction and momentum of the trend, is currently hovering above the zero-line, suggesting that an upward trend is present and that momentum is still relatively strong, for now.

Trading Forex News: The Strategy
Trading Forex News: The Strategy
Recommended by Tammy Da Costa
How can news impact your trades?
Get My Guide

In addition to this, price action remains in a confluent zone, between the above mentioned Fibonacci levels.

EUR/USD 4 Hour Chart

Euro Dollar Outlook: Price Action Stalls Ahead of FOMC

Chart prepared by Tammy Da Costa, IG

Client Sentiment

EUR/USD Client Sentiment
How to Use IG Client Sentiment in Your Trading
How to Use IG Client Sentiment in Your Trading
Recommended by Tammy Da Costa
How does sentiment affect the market?
Get My Guide

IGCS shows that, at the time of writing, EUR/USD client sentiment remains bearish, with 61% of retail traders are holding short positions in. We typically take a contrarian view to crowd sentiment and the fact that clients are net short, suggests that prices may continue to rise

--- Written by Tammy Da Costa, Market Writer for DailyFX.com

Contact and follow Tammy on Twitter: @Tams707

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES