EUR/USD Current Price: 1.1120
- Anticipation Builds for Federal Reserve’s Monetary Policy Announcement
- Eurozone Confirms August Consumer Price Index at 2.2% Year-on-Year
- Bulls Retain Control Despite EUR/USD Losing Steam in Near Term
As the EUR/USD pair hovers around 1.1120, investors eagerly await the Federal Reserve’s upcoming monetary policy announcement. Despite the US Dollar weakening, the Euro struggles to capitalize on the situation, setting the stage for potential market volatility. The Fed is expected to cut interest rates, with a 25 basis points cut widely anticipated, although a larger 50 bps trim is not ruled out.
Key Factors to Watch:
- Market Reaction to Fed’s Interest Rate Decision
- Summary of Economic Projections (SEP) Release
- US Building Permits and Housing Starts Data
The Eurozone’s Harmonized Index of Consumer Prices (HICP) rose by 2.2% in August, with Building Permits and Housing Starts in the US also showing positive growth. However, the market focus remains on the Fed’s policy moves and economic projections.
EUR/USD Technical Analysis:
Despite short-term fluctuations, the EUR/USD pair remains bullish. Key technical indicators suggest a positive outlook, with the pair comfortably above the 20 SMA and showing strength in the 100 and 200 SMAs. While near-term pressure may lead to a slight decline, the overall trend remains positive pending the Fed’s decision.
Support and Resistance Levels:
- Support: 1.1090, 1.1050, 1.1010
- Resistance: 1.1160, 1.1200, 1.1250
Overall, the EUR/USD pair’s performance hinges on the Federal Reserve’s actions and market interpretation of the upcoming economic data. Stay tuned for potential market shifts based on these key factors.