EUR/USD on the Edge Ahead of FOMC and ECB Decisions

Azeez Mustapha

Updated:

Unlock Daily Forex Signals

Select a Plan

£39

1 - month
Subscription

Select

£89

3 - month
Subscription

Select

£129

6 - month
Subscription

Select

£399

Lifetime
Subscription

Select

£50

Separate Swing Trading Group

Select

Or

Get VIP forex signals, VIP crypto signals, swing signals, and forex course free for lifetime.

Just open an account with one our affiliate broker and make a minimum deposit: 250 USD.

Email [email protected] with a screenshot of funds on account to get access!

Sponsored by

Sponsored Sponsored
Checkmark

Service for copy trading. Our Algo automatically opens and closes trades.

Checkmark

The L2T Algo provides highly profitable signals with minimal risk.

Checkmark

24/7 cryptocurrency trading. While you sleep, we trade.

Checkmark

10 minute setup with substantial advantages. The manual is provided with the purchase.

Checkmark

79% Success rate. Our outcomes will excite you.

Checkmark

Up to 70 trades per month. There are more than 5 pairs available.

Checkmark

Monthly subscriptions begin at £58.



The EUR/USD pair is currently on the edge of its seat, waiting with bated breath for the FOMC rate decision and press conference tonight (18:00 and 18:30 GMT) and the ECB decision and press conference tomorrow (12:15 and 12:45 GMT). These two pivotal events will determine the fate of the EUR/USD over the coming weeks and months.

Market expectations for the FOMC rate decision are for a dovish 25-basis-point hike, with the US central bank pausing on further hikes. Meanwhile, the ECB may go neutral or hawkish with a 25-bp hike and the promise of further hikes in the months ahead if inflation continues to prove to be sticky and uncomfortably high.

Short-Term Trading Range and Volatility for the EUR/USD

The daily EUR/USD chart shows the pair trading within a short-term range, with support and resistance at 1.0910 and 1.1096, respectively. Volatility, as measured by the ATR indicator, remains at a multi-week low. However, traders should not be fooled by this low reading, as volatility is expected to pick up over the rest of the week. Support, resistance, or both will likely come under pressure.

EUR/USD on the Edge Ahead of FOMC and ECB Decisions
EUR/USD Daily Chart

EUR/JPY: A Different Beast Altogether

EUR/JPY is being driven by a different set of factors, with the Bank of Japan’s loose monetary policy weighing on the Japanese Yen. Euro Area interest rates are expected to rise, and this will widen the rate differential between the two currencies, pushing the EUR/JPY pair higher. However, the Japanese Yen may still continue to attract safe-haven buying due to continued turmoil in the US regional banking sector.

On Tuesday, EUR/JPY hit its highest level since March 2008, reaching 151.61. If this high is taken out again, there is very little resistance before the 160 level, which coincides with the March 2008 monthly high. So, keep an eye on the EUR/JPY for potential trading opportunities.

 

You can purchase Lucky Block here. Buy LBLOCK

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$250 Min Deposit
9.8
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$50 Min Deposit
9
  • Fund Moneta Markets account with a minimum of $250
  • Opt in using the form to claim your 50% deposit bonus
$250 Min Deposit
9

Share with other traders!

Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.

Leave a Reply

Your email address will not be published. Required fields are marked *