EUR/USD: Focus shifts to the Fed this evening
Technicals will hold less relevance as we head into tonight’s fundamental event.
EUR/USD Technical analysis, overview, strategies, and levels
It's a big day for US dollar denominated and related pairs – including this one – as the US Federal Reserve's (Fed) Federal Open Market Committee (FOMC) is set to meet and announce its monetary policy, whereby markets are nearly fully pricing in another 0.25% rate cut following consecutive reductions at the end of July and mid-September, and following interventions from the US central bank in the bond and repo market to address short-term liquidity woes. The announcement will be preceded by Automatic Data Processing's (ADP) Non-Farm estimate and preliminary Gross Domestic Product (GDP). Given the fundamental items today and on Friday with Non-Farm Payrolls (NFP), technicals will hold far less relevance, with breakout strategies on increased volatility more enticing giving the likelihood of getting stopped out on reversal and fading ones.
| Current Technical Overview | Consolidation |
| Technical Overview Conformist Strategies | Sell 1st Resistance After Reversal, Buy 1st Support At/Before Price |
| Technical Overview Contrarian Strategies | Buy 1st Resistance Upon Breakout From Below, Sell 1st Support Upon Breakout From Above |
| S/L for 2nd Resistance | 1.1191 |
| 2nd Resistance | 1.1175 |
| S/L for 1st Resistance | 1.1159 |
| 1st Resistance | 1.1144 |
| Relative Starting Point | 1.1112 |
| 1st Support | 1.1080 |
| S/L for 1st Support | 1.1065 |
| 2nd Support | 1.1049 |
| S/L for 2nd Support | 1.1033 |
IG client and CoT sentiment for EUR/USD
In terms of sentiment, going into these events retail bias is nearly in the middle while Commitment of Trader (CoT) bias is at a majority short 57%.
EUR/USD Chart with retail and institutional sentiment
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