FOMC meeting and press conference. Good for the bulls or bears in EUR/USD?
The EUR/USD has been stagnating for weeks. Yesterday Mario Draghi enchanted investors. He said that interest rates in the euro zone could remain cheap and that the ECB could resume its bond purchase program, if necessary.
Today, Wednesday, the Federal Open Market Committee (FOMC) of the Federal Reserve announces the Fed’s interest rate decision at the subsequent press conference. Investors are eagerly awaiting this decision on US monetary policy. The FMOC announcement has the power to take the markets in a different direction. It may be enough to pull the EUR/USD out of its sideways movement.
Earlier this month the market was able, briefly, to break away from the essential structural level of US$1.121 and formed an interim high of US$1.133 before falling back again to the decisive zone of US$1.121. Yesterday the market tried to push down from this zone. This area is expected to remain exciting. For a sustainable price rise the market must first break through $1.121. If the breakthrough occurs, there could be structural resistance in the US$1.128 range. The next barrier on the way up could then be the highs from June 7th to June 12th, 2019. Further structural resistance could then be found at around US$1.139.
However, if the downward movement continues, and the bears dominate the market, there could be support in the US$1.115 range. If the market breaks through here, further support could come from the lows of April 26th and May 23rd, 2019. If the market breaks through here as well, structural resistance could be at US$1.105 and 1.095 respectively.
The MACD oscillator shows the short movement of the past few days as a bearish cross.
EURUSD Daily Chart | Source: ActivTrader
Written by Daniel Schuetz, External Analyst, ActivTrades
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