EUR/USD keeps the selling bias well in place on Wednesday
EUR/USD maintains the bearish mood around the 0.9900 neighbourhood after briefly probing the 0.9880 region on Wednesday. EUR/USD met a wave of selling orders soon after hitting fresh multi-session peaks around 1.0050 on Tuesday. Since then, it was a one way move to earlier 2-week lows in the 0.9885/80 band. The sharp 2-day decline in the pair comes exclusively in response to the equally strong upside momentum in the greenback, which appears in turn bolstered by expectations of extra rate hikes by the Fed in the upcoming months.
EUR/USD extends further the corrective decline to the area below 0.9900 ahead of the interest rate decision by the Federal Reserve. In the meantime, the pair’s very near-term price action is expected to be determined by developments from the FOMC event later on Wednesday. So far, price action around the European currency is expected to closely follow dollar dynamics, geopolitical concerns and the Fed-ECB divergence. On the negatives for the single currency emerge the so far increasing speculation of a potential recession in the region, which looks propped up by dwindling sentiment gauges as well as an incipient slowdown in some fundamentals.
So far, the pair is retreating 0.64% at 0.9904 and a breach of 0.9884 (weekly low September 21) would target 0.9863 (2022 low September 6) en route to 0.9859 (December 2002 low). On the other hand, the initial hurdle comes at 1.0091 (55-day SMA) seconded by 1.0197 (monthly high September 12) and finally 1.0297 (100-day SMA).
So far, the pair is retreating 0.64% at 0.9904 and a breach of 0.9884 (weekly low September 21) would target 0.9863 (2022 low September 6) en route to 0.9859 (December 2002 low). On the other hand, the initial hurdle comes at 1.0091 (55-day SMA) seconded by 1.0197 (monthly high September 12) and finally 1.0297 (100-day SMA).