The EUR/USD currency pair is currently trading at 1.10855. The Federal Reserve has increased interest rates by 25 basis points, as was anticipated, bringing them to 5.25-5.50%. This level marks the highest rate in the past 22 years.

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for FREE REGISTER to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level1)]

• The Fed hiked rates by 25 bps as expected to 5.25-5.50%, its highest in 22 years.

The pair currently trades last at 1.10855.

The previous day high was 1.1087 while the previous day low was 1.1021. The daily 38.2% Fib levels comes at 1.1046, expected to provide support. Similarly, the daily 61.8% fib level is at 1.1062, expected to provide support.

The EUR/USD is trading positive after 6 consecutive days of losses, precisely at 1.1090 and 0.37% gains during the session.

As expected, the Federal Reserve (Fed) hiked rates by 25 basis points and is positioned in the 5.25%-5.50% target. However, during the press conference, Chair Powell did not commit to a hike in September as ongoing decisions will depend on incoming data.
Regarding the economic assessment, Powell noted that economic activity and the labour market remain robust but that inflation remains too high.

That said, the DXY index fell to 101.030, showing a decrease of 0.26% on the day. Additionally, the US treasury yields on 2, 5 and 10-year are in negative territory at 4.85%, 4.11% and 3.87%, respectively, and applied further pressure on the USD.

Regarding Thursday’s European Central Bank (ECB) decision, markets have largely priced in a 25 bps hike, and investors will look for clues regarding forward guidance. As for now, the odds of a hike according to the World Interest Rate Possibilities (WIRP) in Septmeber fell below 50%, but in October and December are largely priced in, so messaging will be key.

According to the daily chart, the technical outlook for the EUR/USD has improved as indicators are starting to gain strength but still, the bears are holding their ground. The Relative Strength Index (RSI) with a slightly upward slope to the north, while the Moving Average Convergence Divergence (MACD) is still in negative territory, printing red bars. That being said, the bulls managed to defend the 20-day Simple Moving Average (SMA) so outlook for the EUR/USD is bright on the bigger picture.

Resistance levels: 1.1100, 1.1150,1.1190.
Support levels: 1.1050 (20-day SMA), 1.1030, 1.1000.

Technical Levels: Supports and Resistances

EURUSD currently trading at 1.1086 at the time of writing. Pair opened at 1.1052 and is trading with a change of 0.31 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.1041, 50 SMA 1.0901, 100 SMA @ 1.0891 and 200 SMA @ 1.0701.

The previous day high was 1.1087 while the previous day low was 1.1021. The daily 38.2% Fib levels comes at 1.1046, expected to provide support. Similarly, the daily 61.8% fib level is at 1.1062, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.102, 1.0987, 1.0954
• Pivot resistance is noted at 1.1086, 1.1119, 1.1152

[/s2If]
Download Nehcap EAWe have two EAs that are operational on our LIVE accounts.

1. EA-FIX: Check out the details here. Download EA-FIX . EA-FIX is a non-grid HFT scalper.
2. EA-GROWTH: High quality low dd EA using trend grids. Download EA_GROWTHJoin Our Telegram Group

Share this:

• Facebook
• X

Like this:

Like Loading...