The EURUSD trades in its daily area of strength between the upper blue and red bands (blue arrow). The longer this region is maintained, the greater the likelihood of further appreciation. The market seems to be pricing in strength ahead of Wednesday's Fed release and Thursday's ECB statement.
The hourly shows a solid underlying momentum as the stochastic pushes towards 80 (red rectangle). This bullishness accompanies good angle and separation in the hourly EMAs. If the stochastic holds in the red rectangle area, the short-term traders will align with the daily positions ahead of the scheduled and critical central bank releases.
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.