The EUR/USD is still near its highest levels in 5 months, as it has reached towards the top at 1.0937 and is established there at the time of writing. With the continued pressure on the USD the markets await the Federal Reserve’s decision later today about the interest rates and the monetary policy, amid strong expectations that the bank will keep its current monetary policy as is, with interest rates at 1% without change. However, the wait is going to be for the monetary policy statement after the decision, as the markets are looking for clues about the next possible rate hike by the bank. The moves since the start of this week’s trading were relatively calm due to labor day holiday, and the wait now for the Federal Reserve’s decisions, and the US employment data. The recent Euro gains are still supported by optimism of Macron emerging as a winner in the French Elections, which means that France will remain in the EU and under the Euro.
Technically: The EUR/USD is still in a bullish trend which will be stronger if the pair reaches the resistance areas at 1.0960 and 1.1000, and breaking above the latter would establish the bullish trend in this pair. From the bearish side, the nearest support levels are currently located at 1.0880 and 1.0800.
On the economic data front: The economic agenda for today shows that the focus during the European session is going to be on the announcement of the Eurozone GDP and the PPI index. Before that, there will be an announcement about the unemployment data from Spain and Germany. During the American session, the focus will naturally be on the ADP report for the non-farming employment, and the non-manufacturing ISM index, and finally, the Federal Reserve’s announcement about the monetary policy and interest rates.
