Daily Market Report – EUR/USD FOMC is to unleash the storm September 20, 2017

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EUR/USD Stays Higher

The currency pair has resumed the minor rebound and has touched a near-term dynamic resistance. Technically is expected to drop on the short term, but unfortunately, the fundamental factors will take the lead later. Price has changed little till now, but a high volatility is expected during the FOMC, you should stay away from trading tonight because you can ruin your account.

EUR/USD is trading right below a long-term major resistance level (1.2041), has made two false breakouts above this major obstacle, but a disappointment tonight will help the buyers to lead the rate much above it.

The European currency has received support from the German PPI, which has increased by 0.2% in August, beating the 0.1% estimate. The US is to release the Existing Home Sales later, the indicator is expected to increase from 5.44M to 5.46M in the previous month.

The Federal Reserve is expected to maintain the Federal Funds Rate unchanged at 1.25%, but the FOMC could shake the markets with its announcements regarding the monetary policy.

Price finally retested the upper median line (uml) of the minor descending pitchfork, the rebound was expected after failure to retest the median line (ml). It was almost to retest the upper median line (UML) of the ascending pitchfork, could still reach this line in the upcoming hours. Technically is expected to drop after the retest of the mentioned levels, but the fundamental factors could drive it towards new peaks.

EUR/CHF Another Leg Lower?

EUR/CHF dropped today and failed to reach the next major upside target from the fifth warning line (WL5). Now is pressuring the broken warning line (wl1) of the minor ascending pitchfork, a failure to stay above this line and above the 1.1536 level will send the rate towards the upper median line (uml) again.

USD/CAD Approached Dynamic Support

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USD/CAD decreased significantly after the false breakout above the confluence area formed by the median line (ml) with the lower median line (LML). Price failed to stay above the median line (ml) of the minor ascending pitchfork and now approaches the lower median line (lml). A breakdown from the minor pitchfork will signal a further drop.

By Olimpiu Tuns

Market Analyst

Risk Disclaimer:

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Source:: Daily Market Report – EUR/USD FOMC is to unleash the storm September 20, 2017

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