EUR/USD breaks above the 200-hour MA and touches a session high of 1.1377
The pair finally manages a break above the 200-hour MA (blue line) and now the near-term bias turns more bullish after playing ping pong between the 100 and 200-hour moving averages since yesterday.
Resistance is seen around 1.1374-84 next before offers around 1.1400 will come into play. There is also a decent-sized expiry at 1.1402 that may help to limit upside movement on the day – just to take note. Further resistance is then seen at the swing region of 1.1410-20.
It’s all about dollar weakness on the session at the moment with the greenback slipping against the rest of the major bloc. NZD/USD is up by more than 1% now as price looks to secure a break above the key resistance levels highlighted earlier.
There isn’t any headlines or catalysts for the movement here as this is mainly all positioning ahead of the FOMC meeting tomorrow. Whenever this happens, it’s good to take note as stuff like this changes expectations ahead of the decision.
Coming into this week, markets appear to be positioned in a “buy the rumour, sell the fact” mode on a dovish Fed. But in the build up to the decision, we’re already seeing the selling take place so it’s not going to be as sharp of a move as what could have been if the Fed meets expectations and delivers on a dovish hike.
But still, a dovish tone will have lingering repercussions for the dollar lasting into next year so if the Fed does deliver on that, expect the greenback to stay pressured as we close out the year despite the price action seen over the last two days.