EURUSD trades in narrow trading range today as markets await the FOMC statement later today for fresh clues on the next Feds policy moves. Analysts forecast that Fed might proceed with one more rate cut during 2020. Christine Laggard in the ECB meeting tomorrow expected to reiterate the recent policy decisions from the central bank and continue with the stimulus package.
Investors are getting nervous as we approach the December 15th deadline of new tariffs on Chinese imports from the U.S. administration.
Traders will keep an eye on monthly U.S. CPI and the core CPI due at 13:30GMT.
The pair consolidates today below the 1.11 mark after the sharp correction last Friday on robust NFP data. EURUSD lost over 61 pips after the release of NFP and broke below the 50 and 100-day moving averages. Yesterday the pair managed to recover some of Friday’s losses but stalled at 1.1096.
On the technical analysis side the pair has refuelled the positive momentum after yesterday breached above the 100-day moving average. EURUSD tested the 50-day moving average support and managed to rebound the last two trading sessions. The pair gives up 0.10% at 1.1081 with the first resistance now at daily low at 1.1079. A break below might add to the pressure and test the 100-day moving average at 1.1063. If EURUSD breaks below that support, then the next target to the downside is 1.1002 the low from December 2nd.
On the upside, first resistance stands at 1.1095 the daily top and then the psychological 1.11 mark. A settlement above will give bulls more strength for a move to to the next hurdle the 200-day moving average at 1.1153.