Euro And Cable: Bulls Control Price Action Ahead Of Fed Statement
Despite worse-than-expected German business-confidence data the euro has held up well against the U.S. dollar Monday. Although prices fluctuated within a confined band of only 40 pips, the euro showed resilience against the greenback ahead of the Federal Reserve meeting. With the euro remaining firmly above 1.1240, we expect another test of the 1.13-barrier, which may result in an upswing towards 1.1335 and 1.1355. However, while we do not expect a shift in sentiment a test of these lower resistances might be likely before the Fed statement tomorrow. The Fed is not expected to change monetary policy this month but market participants are eager to learn whether policy makers changed their outlook for rate increases in 2016 or maintain their hawkish policy stance.
The British pound broke through the 1.45-mark and climbed quickly towards 1.4580.Whether we will see an extended upside move remains to be seen and should also hinge on the performance of the U.S. dollar. Next crucial resistance levels are seen at 1.46 and 1.4650. However, if sterling falls back below 1.4480 it may extend its slide towards 1.4450 and 1.4410.
Traders should keep an eye on important economic data from the U.S. such as Durable Goods Orders, scheduled for release at 12:30 UTC and Consumer Confidence due at 14:00 UTC.
Here are our daily signal alerts:
EUR/USD
Long @ 1.1310 SL 25 TP 30-40
Short @ 1.1224 SL 25 TP 20, 40
GBP/USD
Long @ 1.4521 SL 25 TP 20, 40
Short @ 1.4460 SL 25 TP 20, 40
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