EURUSD pair bounced higher in initial trading but dragged back towards the end of the session finish at 1.1164, for a minute loss of 13 pips or 0.17%. The pair traded in a tight daily range of 57 pips with a high of 1.1218 and a low of 1.1161. Further, it closed the day well below the 61.8% Fibonacci retracement level at 1.13 yet again on Tuesday.
Fundamentally. the Eurozone Current Account balance revealed a worse than expected -21.0 billion deficit, whereas the U.S. NAHB Housing Market Index posted a positive surprise with a reading of 65. EURUSD still had a quiet day, as the traders await the most important interest rate decision of the Fed moreover the BOJ today on Wednesday. The market is expected to remain in choppy conditions today, as technical trading might rule the market.
Note: Market can get highly volatile on the release of FED FOMC Rate Decision.
Today on Wednesday, the investors are recommended to monitor the following events:
No major releases scheduled
MBA Mortgage Applications 11:00
DOE U.S. Crude Oil Inventories 14:30
FOMC Rate Decision (Lower Bound) 18:00
Fed Summary of Economic Projections 18:00
FOMC Rate Decision (Upper Bound) 18:00
EURUSD consolidates in a narrow trading range despite the spike towards the end of the session as it immediately jumped back to the zone between 1.1200 and 1.1285. Preceding that interval, the further resistance level is found at 1.1465, while a support is found at 1.1185, at 1.1025 and near 1.09.
Previous Analysis Reference: Sell below 1.1215 meets the first target of 1.1150 making green pips for us. (20th Sep 2016)
Daily Trading Range:
1.1325 – 1.1025
Daily Support & Resistance Levels
Pivot Point: 1.1182
– Sell Stop @ 1.1120
o Take Profit:
1st @ 1. 1050
o Stop Loss 1.1160