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EUR/USD sidelined but awaits FOMC

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

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Guatemala) - EUR/USD has been somewhat of a sideshow in Asia while the Aussie CPI data shook up the antipodean crosses with the Aussie rallying towards recent highs.

    The CPI data leaves the Aussie in a better light while the euro's downside is playing out as risk improves. That said, the oil price is a likely contender to temper the mood as the dust settles and could support price in the 1.08 handle as we head in towards the FOMC.

    "The Fed's assessment of international developments and the implications for the US economy and financial markets should be focus for discussion. With only a short statement, we expect the Fed to repeat that normalization will proceed as data allows in 2016, though markets will be watching for any shift to a more dovish stance," explained analysts at Westpac Banking Corporation.

    EUR/USD levels

    Technically, EUR/USD is falling away on the daily sticks while the key resistance overhead remain at 1.10/1.1060 where the 200 dma is located. This is also the area of the 2014-2016 downtrend and 55 week ma. To the downside, 1.0523 was the recent low and should the 1.08 handle give out, S3 is located at 1.0771.
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