2023-04-19 03:15:00
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Investing.com – The posted a one-day rise on Tuesday, but failed to undo the previous day’s losses or return above the key 1.10 threshold, leaving the currency pair in some uncertainty on Wednesday.
Recall that the Euro Dollar had benefited at the start of the day yesterday from the positive impact on sentiment of figures above expectations for Chinese growth. However, the later-released lower-than-expected ZEW index then halted the rise.
In terms of important EUR/USD stats on Wednesday, the focus will be on the final Eurozone CPI data for March at 11 a.m., while the US schedule will be near empty, an economic calendar quite light which argues for a sideways move in the currency pair.
Forex traders should also keep an eye on Fed rate expectations, knowing that the probability of a 0.25% rate hike for the next FOMC meeting on May 3 is 80.5% this morning, compared to 85.2% the previous day. day before. The probability of an additional rise of 0.25% in June is also currently 22%, stable compared to yesterday.
>> Track market expectations for Fed rates with the Investing.com Rate Barometer
Technical thresholds to watch on EUR/USD
From a chart perspective, note that the rising trend line visible since mid-March on the daily chart halted Monday’s decline and served as the basis for Tuesday’s rebound.
The immediate trend therefore remains bullish. However, for this to remain the case, EUR/USD will need to quickly break through the psychological threshold of 1.10 once more. In this case, last week’s high at 1.1076 and the psychological threshold at 1.11 will be the next bullish targets.
If the trend line mentioned above is broken, the next potential support to consider will be the 1.09 threshold, before the 1.08 threshold, then the 50 and 100 day moving averages at 1.0755 and 1.0726 respectively.
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