OctaFX | OctaFX Forex Broker
Open trading account

EUR/USD immune to US trade data, all eyes on Fed

FXStreet (Córdoba) - EUR/USD remained barely unchanged following the release of better-than-expected US trade data as investors await the Federal Reserve policy decision later on the day.

US trade deficit shrunk to $58.63 billion in September from $67.19 billion the previous month and below the $64.90 billion expected. However, dollar failed to benefit from data, with EUR/USD still trading near daily highs around 1.1070, up 0.19% on the day.

The Federal Reserve will announce its monetary policy decision at 18GMT. Although most analysts still expect a rate hike in December, Fed wording will be closely scrutinized.

EUR/USD technical levels

In terms of technical levels, next resistances are seen at 1.1114 (200-day SMA), 1.1166 (100-day SMA) and 1.1210 (Oct 7 low). On the flip side, supports could be found at 1.1000/1.0996 (psychological level/Oct 23 low) followed by 1.0960 (Aug 11 low) and 1.0925 (Aug 10 low).

USD playbook ahead of October FOMC meeting - RBS

Brian Daingerfield, FX Trading Strategist at RBS, suggests that with no press conference scheduled and no update to the Fed’s projections for growth, inflation, or ‘dots’, the bar was already set fairly high for any change in policy.
Read more Previous

EUR: Downside momentum likely to be contained even if ECB eases - Rabobank

Jane Foley, Research Analyst at Rabobank, suggests that the EUR/USD is likely to trend moderately lower medium-term as the dovish tone of ECB President Draghi last Thursday dealt a swift blow to the EUR.
Read more Next
Start livechat