EURUSD is trading in its area of strength, between the upper blue and red bands (blue arrow), on its daily chart. Price appreciation is a likelihood the longer it maintains in this position. On the righthand side, the hourly chart also shows bullish signs, with the trend-following EMAs and the stochastic having both crossed positively (black ellipses). Momentum is near the 80+ region (red rectangle) and if it holds, a positive momentum will be underlying. Moderating inflation is a tailwind. However, the Fed rate released at 7:00PM GMT and its press conference 30 minutes later advocates for caution. A hawkish tone will exert pressure.
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.