Extended bulls eye key barrier at 1.1242; US data / Fed in focus for fresh signals
The Euro holds in green for the fourth straight day and extends advance in early Wednesday’s trading, maintaining positive tone from Tuesday’s better than expected EU GDP data.
Series of data from the US today and key event – Fed rate decision, are expected to generate fresh signals.
The Fed is expected to stay unchanged but dovish tilt in the statement could sour the tone.
Weaker than expected US GDP data last week would likely impact Fed’s decision, however, analysts see underlying strength of the economy, although weaker, still strong enough to sideline an idea of rate cut, despite the central bank is under strong verbal pressure from President Trump to cut interest rates.
Fresh advance broke above cracked Fibo barrier at 1.1217 (50% of 1.1323/1.1111) and pressures 20SMA (1.1233), which guards next key resistance at 1.1242 (Fibo 61.8% / 30SMA).
Break here is needed to confirm bullish continuation, while failure would keep broader bears alive.
Broken Fibo barrier marks initial support at 1.1217, followed by broken 10SMA (1.1201) and broken Fibo 38.2% (1.1192), close below which would signal an end of corrective phase and shift near-term focus lower.
Res: 1.1233; 1.1242; 1.1278; 1.1303
Sup: 1.1217; 1.1201; 1.1192; 1.1163