www.varchev.com

EUR/USD: The price is looking for direction before the Fed decision on Wednesday

Rating:

12345
Loading...

Sellers consolidated their short-term control over the EUR / USD price, breaking through the 1.1000 level. The price remains in the downward trend after the failure of the test in the 50 period period and the diagonal on 13.09. Price action confirmed pinbar welding on the day in question, which was a signal for sale.

At this stage, the area at 1.09863 supports the price, preventing the movement to continue down with more. Here if holding over the area we could expect a push to 23.6 Fibonacci or the zone at 1.10405.

Alternatively, the failure of the current support area could potentially drive the price down to 1.09262. Currently, demand for the dollar is expected to intensify given the season we are entering.

Sellers may have seized near-term control again but with the Fed meeting tomorrow, price could potentially sit in this area (further support around 1.0985) close to 1.1000 before finding more direction this week.
Risks to any downside move from here can be defined and limited by the key hourly moving averages close to 1.1040 while any further downside extension requires a firm break below 1.1000 - and preferably 1.0985 - to see a potential test of lows around 1.0926-27.
Of note, there are also large expiries rolling off at 1.1000 today (€856m) and tomorrow (€1.6bn) so that may factor into price action being a bit more "sticky" at current levels ahead of the Fed decision tomorrow.

 Trader Martin Nikolov

Read more:

RECCOMEND WAS THIS POST USEFUL FOR YOU?
If you think, we can improve that section,
please comment. Your oppinion is imortant for us.
WARNING: Any news, opinions, research, data or other information contained within this website is provided as general market commentary and does not constitute investment or trading advice. Varchev Finance Ltd. expressly disclaims any liability for any lost principal or profits which may arise directly or indirectly from the use of or reliance on such information. Varchev Finance Ltd. may provide information, quotes, references and links to or from other sites and blogs and other sources of economic and market information as an educational service to its clients and prospects and does not endorse the opinions or recommendations of the sites, blogs or other sources of information.
Varchev Finance

London


25 Canada Square, Level 33, office 50, Canary Wharf London, E14 5LQ +44 20 3608 6256

Universal numbers

World Financial Markets - 0700 17 600    Varchev Exchange - 0700 115 44

Varchev Finance Ltd is registered in the FCA (FINANCIAL CONDUCT AUTHORITY) with a passport in the United Kingdom: FCA, United Kingdom - registration number: 494 045, which allows provision of financial services in the United Kingdom.

Varchev Finance Ltd strictly comply with the statutes of the European directive MiFID (Markets in Financial Instruments). targeting increased efficiency, transparency and uniformity of financial instruments.
Varchev Finance Ltd is authorized and regulated by the Financial Supervision Commission - Sofia, Bulgaria: License number RG-03-02-05 / 15.03.2006

The information on this site is not intended for distribution or use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.


Disclaimer:

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63,41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

chat with dealer
chat with dealer
Cookies policy