EUR/USD keeps the range as markets await Fed decision

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 16, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Córdoba) - EUR/USD dropped a few pips and returned to the flat line as better-than-expected US housing data helped the dollar and capped the latest EUR/USD upside attempt.

    US housing starts climbed 10.5% in November to a seasonally adjusted annual rate of 1.173 million, nearly erasing a 12% decline in October.

    However, at this point data has virtually no impact on the dollar as market attention remains on the Fed decision that concludes its two-day meeting at 19:00 GMT. The Fed is widely expected to raise rates by 25 bps and investors will be focusing on how quickly the bank will tighten in 2016.

    EUR/USD had risen to 1.0940 just before the data only to pull back to the 1.0925 zone afterwards. At time of writing, the pair was trading at 1.0929, where it traded virtually unchanged since opening. On Tuesday, EUR/USD lost more than 1% and bottomed out at 1.0903 after being rejected from the 100-day SMA.

    EUR/USD key levels

    In terms of technical levels, next supports are seen at 1.0903 (Dec 15 low), 1.0878 (Dec 9 low), 1.0829 (Dec 8 low) and 1.0795 (Dec 7 low). On the flip side, immediate resistances line up at 1.1034 (200-day SMA), 1.1059 (Dec 15 high/100-day SMA), 1.1100 (psychological level) and 1.1139 (Oct 23 high).

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