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EUR/USD clings to gains above 1.0870, FOMC eyed

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 27, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Edinburgh) - The shared currency remains in the positive ground vs. the dollar on Wednesday, taking EUR/USD to the 1.0870/75 band.

    EUR/USD cautious ahead of FOMC

    Spot is advancing for the third consecutive session so far, extending the rebound from post-ECB troughs in sub-1.0800 levels recorded last week. The risk aversion theme continue to rule the sentiment amongst traders for the time being, while cautiousness is growing bigger ahead of the FOMC meeting due later in the NA session.

    Market expectations see the Committee keeping the Fed Funds unchanged today and a cautious tone from the statement, while another rate hike is seen at the March meeting.

    EUR/USD levels to watch

    The pair is now advancing 0.15% at 1.0876 and a breakout of 1.0981 (100-day sma) would target 1.1055 (200-day sma) en route to 1.1059 (high Dec.15). On the flip side, the immediate support aligns at 1.0777 (post-ECB low Jan.21) followed by 1.0737 (38.2% Fibo of 1.0538-1.1059) and finally 1.0709 (low Jan.5).

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