Euro Edges Higher Following Slide After Fed Meeting

The EUR/USD fell on Wednesday following the Fed’s announcement that the December FOMC meeting would be live, and interest rates could climb if the data supported a change. The tone of the statement was more hawkish than expected, driving yields in the U.S. higher and eroded the value of the EUR/USD. With expectations that the ECB will expand their bond purchase program in December, the Euro is likely to remain under pressure. The Euro received a boost after the EMU ESI economic confidence unexpectedly improved in October, with the overall reading rising to 105.9 from 105.6 in the previous month.

The currency pair is subdued and consolidated on Thursday as now traders await the decision by the Bank of Japan on its bond purchase program. Support near the August lows at 1.0847. Resistance is the breakdown level at 1.1080. Momentum is negative with the MACD printing in the red with a downward sloping trajectory. The RSI moved lower with price action reflecting accelerating negative momentum while printing a reading of 35, which is just above the oversold trigger level of 30.

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