EURUSD Analysis
| Performance after Monday | |||||
| Period | Pct | Chg | Momentum | ||
| Monday | -0.08% | -8.8 Pips |  |
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| Week to-date | -0.1% | -11 Pips | |
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| February | 0.87% | 90.4 Pips |  |
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Upcoming key events (London Time)
Wed 07:00 PM USD FOMC Meeting Minutes
What happened lately
The primary focus this week is the upcoming United States economic event, where the Federal Open Market Committee (FOMC) Meeting Minutes are scheduled to be released on Wednesday at 07:00 PM. This event is classified as having a high impact, indicating that market participants and investors are closely monitoring the minutes for any clues or insights into the future monetary policy direction of the Federal Reserve. The FOMC Meeting Minutes typically provide detailed insights into the discussions and considerations that influenced recent policy decisions, including interest rates, inflation, and broader economic assessments. Strong emphasis will be placed on language that may suggest the pace or magnitude of future rate hikes or cuts.
Other than this, there are no major economic news developments that are likely to impact the Eurozone directly this week. As such, the focus for traders and economists will be on updates coming from the U.S. as any significant changes in expectation surrounding Federal Reserve policy could indirectly affect the Euro area’s economic performance through exchange rate adjustments and global economic confidence.
On Monday, the EURUSD pair dropped slightly by 0.08% to 1.04877, indicating a phase of consolidation. Currency movements in the EURUSD pair are currently being driven by anticipation and positioning ahead of the FOMC Meeting Minutes. The minimal movement suggests that traders might be adopting a cautious stance, awaiting further macroeconomic signals before taking more definitive positions. Depending on the content of the meeting minutes, should there be indications of continued hawkishness from the Federal Reserve, this might lead to further strengthening of the USD against the EUR, given the potential for continued rate hikes. Conversely, dovish signals could weaken the USD, leading to potential gains for the EUR in the pair. Thus, the immediate reaction in the forex market will be shaped largely by the interpretations and expectations set by the FOMC minutes release.
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What can we expect from EURUSD today?
EURUSD on Monday dropped -0.08% to 1.04877. Price is above 9-Day EMA while Stochastic is rising.
Updated daily direction for EURUSD looks mixed as the pair is likely to consolidate above 1.0469 (S1).
Looking ahead today, to see upside interest, we prefer to look at price breakout of last daily high of 1.05086 or trades above daily pivot 1.04888. Break above could target R1 at 1.05075. While to the downside, we are looking at 1.0469 (S1) and daily low of 1.04701 as support levels. EURUSD need to break on either side to indicate a short-term bias. A close below 1.04701 would indicate selling pressure.
For the week to-date, take note that EURUSD is mixed as compared to the prior week.
Key levels to watch out:
| R3 | 1.0546 |
| R2 | 1.05273 |
| R1 | 1.05075 |
| Daily Pivot | 1.04888 |
| S1 | 1.0469 |
| S2 | 1.04503 |
| S3 | 1.04305 |
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