The euro currency is defending 1.18 and is inching higher around 1.1818 against the U.S. dollar before today’s U.S. Federal Reserve’s monetary policy and rate decision.
The EUR/USD currency exchange rate is drifting higher despite pulling back from a two week high price point on Tuesday.
Today’s headline event on the economic calendar is the U.S. Federal Reserve’s monetary policy and rate decision. The U.S. central bank is not expected to make any changes with their monetary policy, Fed Funds Rate (FFR) or monthly asset purchases. Forex traders will be listening closely to what Federal Reserve Chair Jerome Powell has to say during his press conference.
It is likely Mr. Powell will reiterate the Federal Reserve’s commitment to supporting the U.S. economy despite rising consumer prices. However, the Federal Reserve is likely to debate tapering as well as when to normalize monetary policy.
The U.S. will also publish monthly import prices. Germany, the euro area’s largest economy will publish monthly import numbers as well. The United Kingdom will release the Nationwide housing price index (HPI) and BRC will publish their monthly shop prices index.
Daily Euro Currency Technical Analysis (EUR/USD)
The euro currency has gained ground for two days in a row. Looking at the above daily MT 4 price action chart, the EUR/USD Forex market has now confirmed a bullish falling wedge formation. The 14 day MACD histogram is also signaling a possible bullish signal.
The 21 day simple moving average is immediate technical resistance. This level lines up at 1.1820. The monthly high price point comes into play at 1.19 with congestion zone lining up at 1.1975 to 1.1980. This is also the 50 and 100 day simple moving averages.
On the downside, immediate technical support lines up at 1.1780. The monthly low price level is in play at 1.1750. The falling wedge support is at 1.1730 with the key round level of 1.17 the coming into the picture.