Ahead of the FOMC meeting, USD is under pressure. Investors took profits on its recent gains. The euro utilized this window edging higher to a two-week high at 1.1129. At yesterday’s session, the pair rejected at 50Dsma and managed to close above 20Dsma.
The Conference Board Consumer Confidence Index, which had improved in June, declined in July. The Index stands at 90.9 now, down from 99.8 in June. Ahead of the FOMC meeting, US economy delivered negative readings.
Technical view: The pair rejected twice at 50Dsma, but managed to close above 20Dsma. In the H1 chart, the pair has been reaching higher highs and higher lows.
But, the pair has been making lower lows and lower tops, fell below the lower end of the ascending trendline in the four-hour chart.
Intraday resistance is seen at 1.1100, 1.1130, and 1.1170. Support is found at 1.1050 and 1.1020. We advised buying with sl at 1.0850, moving to 1.0925 now. Monthly support is found at 1.0730. In case the pair lost the 1.0850 again. Selling accelerates. The Federal Reserve and the ECB’s monetary policies differ, favoring the longer-term bearish outlook.
The pair faced resistance at the descending upper trendline in the four-hour chart. In case bulls take out 1.1225, they are likely to reach 1.1300 in the near term. Traders can use a dip to buy at sl 1.0920.
We recommend intraday selling only below 1.0920 with targets at 1.0870 and 1.0850. Selling accelerates only below 1.0850.
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