Forex analytics and overview

EUR/USD edges higher, all eyes on the Fed meeting

2023.09.20 05:07

XM Group

  • continues to exhibit low volatility ahead of today’s Fed meeting
  • It tested the May 31 low and bounced higher but remains below the 1.0720 level
  • Bearish sentiment lingers but the SMAs’ convergence points to an imminent strong move


EURUSD_2023Sep20

EURUSD is hovering below the 1.0720-1.0727 area as market participants are preparing for today’s significant Fed meeting. Its outcome and the overall tone of the accompanying press conference could determine the next leg in EURUSD. The bears are still in control since the July 17, 2023 trendline remains intact, supported also by the RSI trading below its 50-midpoint for a considerable amount of time.

However, the bulls are ready to jump the gun if they get the appropriate signal from the remaining momentum indicators. More specifically, the stochastic oscillator is trading in its oversold territory and hovering around moving average. A move above its 20 threshold and towards the August 31 local peak could be seen as a strong bullish signal. In the meantime, the Average Directional Movement Index (ADX) has dropped below its 25-threshold, pointing to a trendless EURUSD market and potentially preparing to signal the next trend.

Should the bulls feel energized to stage a short-term rally, they could try to overcome the busy 1.0720-1.0727 area and then test the resistance set by July 17, 2023 downward sloping trendline. Even higher, the 50-, 100- & 200-day simple moving averages (SMAs) in the 1.0828-1.0907 area could prove tougher to crack than currently envisaged.

On the flip side, the bears could take advantage of any short-term upleg and try to engineer a push towards the important 1.0481-1.0571 region, which is populated by the February 27, 2023 low, the November 15, 2022 high and the 38% Fibonacci retracement of the September 28, 2022 – April 26, 2023 uptrend. They could then have the chance of making a new 2023 low and potentially set their eyes on a bigger prize at the 1.0315 area.

To sum up, market participants are gearing up for today’s events with the SMAs’ convergence potentially pointing to a sizeable market reaction.

Source link

Related Articles

Back to top button
bitcoin
Bitcoin (BTC) $ 95,999.72 2.46%
ethereum
Ethereum (ETH) $ 2,648.65 3.92%
xrp
XRP (XRP) $ 2.55 6.12%
tether
Tether (USDT) $ 1.00 0.04%
bnb
BNB (BNB) $ 639.47 2.75%
solana
Solana (SOL) $ 169.69 3.12%
usd-coin
USDC (USDC) $ 1.00 0.00%
dogecoin
Dogecoin (DOGE) $ 0.241538 5.07%
cardano
Cardano (ADA) $ 0.764139 5.53%
staked-ether
Lido Staked Ether (STETH) $ 2,643.54 4.07%
tron
TRON (TRX) $ 0.237165 3.30%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 95,852.68 2.22%
chainlink
Chainlink (LINK) $ 17.44 5.12%
wrapped-steth
Wrapped stETH (WSTETH) $ 3,175.32 3.16%
sui
Sui (SUI) $ 3.27 5.17%
avalanche-2
Avalanche (AVAX) $ 24.17 4.10%
stellar
Stellar (XLM) $ 0.325266 6.19%
litecoin
Litecoin (LTC) $ 125.81 2.05%
leo-token
LEO Token (LEO) $ 9.69 0.53%
the-open-network
Toncoin (TON) $ 3.59 0.74%
shiba-inu
Shiba Inu (SHIB) $ 0.000015 3.29%
hedera-hashgraph
Hedera (HBAR) $ 0.208944 5.28%
usds
USDS (USDS) $ 1.00 0.36%
hyperliquid
Hyperliquid (HYPE) $ 24.22 1.68%
polkadot
Polkadot (DOT) $ 5.03 0.09%
weth
WETH (WETH) $ 2,654.74 3.80%
mantra-dao
MANTRA (OM) $ 7.53 0.27%
bitcoin-cash
Bitcoin Cash (BCH) $ 314.92 3.05%
ethena-usde
Ethena USDe (USDE) $ 0.995447 0.49%
bitget-token
Bitget Token (BGB) $ 4.67 3.27%
wrapped-eeth
Wrapped eETH (WEETH) $ 2,814.26 3.27%
uniswap
Uniswap (UNI) $ 8.77 6.43%
monero
Monero (XMR) $ 228.05 1.08%
whitebit
WhiteBIT Coin (WBT) $ 27.31 0.40%
near
NEAR Protocol (NEAR) $ 3.29 3.79%
pepe
Pepe (PEPE) $ 0.000009 4.67%
bittensor
Bittensor (TAO) $ 441.13 3.37%
aave
Aave (AAVE) $ 242.17 7.71%
aptos
Aptos (APT) $ 6.04 4.39%
ondo-finance
Ondo (ONDO) $ 1.11 10.59%
dai
Dai (DAI) $ 0.999851 0.04%
internet-computer
Internet Computer (ICP) $ 6.93 2.64%
official-trump
Official Trump (TRUMP) $ 15.87 6.14%
ethereum-classic
Ethereum Classic (ETC) $ 20.30 3.08%
tokenize-xchange
Tokenize Xchange (TKX) $ 37.66 1.93%
okb
OKB (OKB) $ 48.55 2.18%
mantle
Mantle (MNT) $ 0.85403 17.55%
gatechain-token
Gate (GT) $ 22.59 1.21%
susds
sUSDS (SUSDS) $ 1.04 0.10%
sonic-3
Sonic (prev. FTM) (S) $ 0.851885 0.31%