EURUSD Analysis
| Performance after Tuesday | |||||
| Period | Pct | Chg | Momentum | ||
| Tuesday | -0.01% | -1.2 Pips |  |
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| Week to-date | 0.4% | 43.5 Pips |  |
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| March | 5.26% | 545.3 Pips | |
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Upcoming key events (London Time)
Wed 06:00 PM USD Fed Interest Rate Decision (Federal Funds Rate) Wed 06:00 PM USD FOMC Economic Projections Wed 06:00 PM USD Interest Rate Projections
What happened lately
The current economic landscape is relatively quiet with no major economic news being released today. However, significant developments are anticipated as the U.S. Federal Reserve prepares for an important announcement. On Wednesday, attention will focus on the United States, where the Federal Reserve is set to reveal its decision on the interest rate, accompanied by FOMC economic projections and interest rate projections. These high-impact events are poised to offer critical insights into the future direction of monetary policy in the United States, with potential far-reaching implications on financial markets and exchange rates.
The European market is silent with no notable economic events scheduled for immediate release that could impact the Euro directly. The absence of news leaves the currency vulnerable to influences from external events, particularly those emanating from the United States. Market participants will closely monitor the Federal Reserve’s announcements, as any surprises or deviations from expectations could affect market sentiment and trading behavior across the currency pairs involving the euro.
On Tuesday, EURUSD experienced a marginal decline, closing at 1.09200 with a decrease of 0.01%. The pair is currently in a consolidation phase as traders await upcoming U.S. economic events. The anticipation of the Federal Reserve’s forthcoming rate decision and economic projections has kept the currency pair trading within a narrow range. Traders exercise caution ahead of these key announcements, leading to a lack of significant movement in the euro-dollar exchange rate.
The Federal Reserve’s rate decision and accompanying projections hold the potential to significantly influence the EURUSD pair. Should the Fed choose to maintain or increase interest rates, this typically boosts the U.S. dollar due to increased investment yields, potentially causing EURUSD to move lower. Conversely, a dovish or unexpected decision, such as a hold in rates or a lower-than-expected rate path, could weaken the dollar, thereby lending strength to the euro and pushing EURUSD higher. Market participants will pay particular attention to the tone of the Fed’s economic projections. Any indication of a slower economic outlook or a pause in rate hikes could soften the U.S. dollar, possibly leading the euro to appreciate in response. As these events unfold, high volatility is expected, and EURUSD traders will react to the nuances of the Federal Reserve’s messaging.
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What can we expect from EURUSD today?
EURUSD on Tuesday dropped -0.01% to 1.09200. 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 1.09173 (S1).
Looking ahead today, to see upside interest, we prefer to look at price breakout of last daily high of 1.09226 or trades above daily pivot 1.09199. Break above could target R1 at 1.09227. While to the downside, we are looking at 1.09173 (S1) and daily low of 1.09172 as support levels. EURUSD need to break on either side to indicate a short-term bias. A close below 1.09172 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 | 1.09281 |
| R2 | 1.09253 |
| R1 | 1.09227 |
| Daily Pivot | 1.09199 |
| S1 | 1.09173 |
| S2 | 1.09145 |
| S3 | 1.09119 |
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