The Euro holds bid tone on Wednesday ahead of today’s key event – Fed policy decision.
Fresh bullish acceleration in early European trading penetrates thick daily cloud, after Tuesday’s violation of cloud base was short-lived.
Fears of global growth slowdown, signaled by weak data from EU, China, fall in oil prices and persisting concerns over US/China trade dispute , keep the dollar under pressure and continue to underpin the Euro.
FOMC decision, due later today, is in focus for fresh signals. Wide expectations go for dovish hike, as Fed signaled rate hike in Dec but would slow the pace of hikes in 2019, but also strong pressure on Fed not to hike rates, soured risk sentiment.
The pair generated bullish signal on Tuesday’s close above converged 10;20;30 SMA’s (which now act as support at 1.1355 zone), with probe into daily cloud and cracking falling 55SMA (1.1400) adding to positive signals, but flat momentum on daily chart warns that bulls may run out of steam.
Today’s close in daily cloud is needed to signal bullish continuation towards next pivot at 1.1444 (Fibo 38.2% of 1.1815/1.1215 / 10 Dec spike high).
Res: 1.1405, 1.1444, 1.1472, 1.1500
Sup: 1.1388, 1.1355, 1.1336, 1.1298
