Technical Analysis – EURUSD edges higher; its next leg depends on the Fed meeting
September 20, 2023 2:27 pm
EURUSD is edging higher today as market participants prepare for today’s event
It tested the May 31 low but now appears to be heading towards the 1.0720 level
SMAs’ convergence is potentially opening the door to an imminent strong move
EURUSD is hovering below the busy 1.0720-1.0727 area as market participants are in waiting mode ahead of today’s significant Fed meeting. Its outcome and the tone of the accompanying press conference could play a crucial role in determining the next leg in EURUSD.
The bulls are ready to finally take over the market reins, but the bears are still in control. The July 17, 2023 downward sloping trendline remains intact and the RSI has been trading below its 50-midpoint for a considerable amount of time.
With the Average Directional Movement Index (ADX) dropping below its 25-threshold and thus pointing to a trendless market, the bulls’ attention has turned to the stochastic oscillator. This is trading in its oversold territory and is trying to surpass its moving average. A move above the 20 threshold and towards the August 31 local peak could be seen as a strong bullish signal.
Should the bulls decide to stage a short-term rally, they could try to overcome the busy 1.0720-1.0727 area and then test the resistance set by July 17, 2023 downward sloping trendline. Even higher, they could have a go at breaking the 50-, 100- & 200-day simple moving averages (SMAs) in the 1.0828-1.0907 area.
On the flip side, the bears appear ready to engineer a push towards the important 1.0481-1.0571 region, which is populated by the February 27, 2023 low, the November 15, 2022 high and the 38% Fibonacci retracement of the September 28, 2022 – April 26, 2023 uptrend. They could then have the chance of making a new 2023 low and potentially set their eyes on a bigger prize, the 50% Fibonacci level at 1.0315.
To sum up, with the SMAs’ convergence potentially pointing to a sizeable market reaction, market participants are gearing up for today’s events.
EURUSD is edging higher today as market participants prepare for today’s event
It tested the May 31 low but now appears to be heading towards the 1.0720 level
SMAs’ convergence is potentially opening the door to an imminent strong move
EURUSD is hovering below the busy 1.0720-1.0727 area as market participants are in waiting mode ahead of today’s significant Fed meeting. Its outcome and the tone of the accompanying press conference could play a crucial role in determining the next leg in EURUSD.
The bulls are ready to finally take over the market reins, but the bears are still in control. The July 17, 2023 downward sloping trendline remains intact and the RSI has been trading below its 50-midpoint for a considerable amount of time.
With the Average Directional Movement Index (ADX) dropping below its 25-threshold and thus pointing to a trendless market, the bulls’ attention has turned to the stochastic oscillator. This is trading in its oversold territory and is trying to surpass its moving average. A move above the 20 threshold and towards the August 31 local peak could be seen as a strong bullish signal.
Should the bulls decide to stage a short-term rally, they could try to overcome the busy 1.0720-1.0727 area and then test the resistance set by July 17, 2023 downward sloping trendline. Even higher, they could have a go at breaking the 50-, 100- & 200-day simple moving averages (SMAs) in the 1.0828-1.0907 area.
On the flip side, the bears appear ready to engineer a push towards the important 1.0481-1.0571 region, which is populated by the February 27, 2023 low, the November 15, 2022 high and the 38% Fibonacci retracement of the September 28, 2022 – April 26, 2023 uptrend. They could then have the chance of making a new 2023 low and potentially set their eyes on a bigger prize, the 50% Fibonacci level at 1.0315.
To sum up, with the SMAs’ convergence potentially pointing to a sizeable market reaction, market participants are gearing up for today’s events.
Related Posts: