EURUSD – choppy trading within the cloud ahead of FOMC
The Euro remains constructive on Tuesday and attempts higher again after Monday’s recovery stalled at 1.1810 pivot (Fibo 38.2% of 1.1940/1.1730 downleg) and subsequent pullback returned to key support at 1.1756, provided by 55SMA.
The pair is holding in the middle of thick daily cloud (spanned between 1.1706 and 1.1833) with the action being supported by formation of 30/55 SMA bull-cross.
Plethora of barriers between 1.1810 and 1.1823 (Fibo 38.2% / daily cloud top / converged 10/20SMA’s) marks strong resistance zone, break of which is needed to signal recovery extension.
Daily studies are bullishly aligned and support scenario, however, the pair is likely to stay in a choppy mode until FOMC meeting on Wednesday.
Meantime, releases of ZEW data today (Germany 18.0 f/c vs 18.7 in Nov and EU 30.2f/c vs 30.9 Nov) would influence near-term action on surprise.
Res: 1.1810; 1.1823; 1.1835; 1.1860
Sup: 1.1760; 1.1730; 1.1706; 1.1650