- As you can see, the Euro has rallied a bit during the trading session with the 1.07 level offering a significant amount of support.
- The 1.07 level is a large round psychologically significant figure, but perhaps more importantly, it is also an area where we have seen a lot of action previously by rallying the way we have.
- It suggests that we are probably trying to cover our bets heading into the FOMC interest rate decision as we just don't know exactly what they'll do.
FOMC Meeting Awaits
Yes, they're expected to cut interest rates by 25 basis points, but really at this juncture, I think we've got a situation where traders are just trying to hedge their bets against the press conference, not necessarily issues when it comes to what they actually do, it's about what they're going to do going into the future. And it must be said that a Donald Trump presidency does change things. And I understand that there are theories that the Federal Reserve is independent, but it's not, it clearly is not.
Top Regulated Brokers
So, with this being the case, I think you've got a situation where people are looking to step in and pick up a little bit of value, but I suspect that by the end of the day, we will still be very much sideways.
If we were to break down below the 1.0650 level, then it becomes something a little bit more interesting to me. Otherwise, we are just going back and forth and trying to sort out where to go next. And by the end of the day, and for that matter, the end of the week, I suspect we are going to continue to be closer to just going sideways more than anything else. This is the normal course of action for this market, as it tends to be very sideways over the longer-term.
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