It’s yet another day to watch the EUR-USD. After yesterday’s breakout session, the attention changes to Federal Chair Powell, economic indicators, and Fed’s financial decisions. Meanwhile, let’s check what EUR-USD might have for Forex traders amid such conditions.
It remains a somewhat busy Wednesday for the EUR-USD as far as the economic calendar is concerned. Meanwhile, finalized November inflation figures from Spain will attract attention early during the European session before October’s Eurozone industrial production statistics. Moreover, the industrial production numbers may have more influence without revisions to Spanish inflation data.
Nevertheless, while the figures will offer direction, markets’ will focus on today’s Federal rate decision, Fed Chair press conference, and FOM economic predictions. With Tuesday’s U.S CPI data, markets await a 50bp rate hike. Remember, the CPI data might change the interest rate course and impact the global and the U.S. economic outlook.
Contrarily, today’s Eurozone figures will unlikely affect ECB’s financial outlook and decision. From the European Central Bank, Frank Elderson will speak today. Nonetheless, he will avoid presenting views on the policy intentions and economic structure during tomorrow’s ECB financial decision.
EUR-USD Price Action
The EUR exchanged hands at $1.06327 during this writing, following a 0.01% increase. That comes after EUR-USD slumped to the $1.06208 morning low before soaring to the $1.06390 peak. The pair should avoid the pivot at $1.0611 to eye the $1.0694 resistance.
Meanwhile, optimistic EUR-USD stats and Risk-on sentiment would back bullishness early today, though FOMC projections and the Federal interest rates will remain the primary drivers. Stretched upside will see bulls testing the $1.0756-second resistance mark. EUR-USD will encounter the third massive resistance at $1.0901.
Weakness around the highlighted pivot would see the pair hitting the closest reliable foothold at $1.0549. Nevertheless, excluding a risk-off-driven slump, the EURUSD should dodge sub-$1.05 and the $1.0466 (second support barrier). The pair has the 3rd support zone at $1.0321.
Evaluating the Exponential Moving Averages and the 4hr chart confirms a bullish sign. The EUR-USD hovered beyond $1.05234 (50-d EMA). The 50EMA pulled from 100EMA, as the 100EMA widened from the 200EMA, painting bullish signals.
Stability above $1.0549 (first support) and $1.05234 (50d EMA) would back breakouts past $1.0694 (initial massive resistance) and $1.0756 (second crucial resistance). Losing the first support and the 50-d EMA would see the pair exploring the second support barrier at $1.0466. the 200EMA stands at $1.03164.
The U.S Session
Today remains essential for markets, with the Fed delivering the last interest rate decision for 2022. Meanwhile, yesterday’s CPI data had markets pricing in a 50bp hike, excluding surprise moves, the Federal Chair Powell talk, and economic projects by FOMS will highly influence. Less hawkishness on rates, soft landing, and downward inflation forecast revision would back risk assets and the EUR-USD.
