Tuesday , 17 December 2024
Home Forex EUR/USD stays pinned down by key near-term levels for now
Forex

EUR/USD stays pinned down by key near-term levels for now

There’s not much appetite for traders to stray away from the prevailing price action to be honest. The euro remains on the softer side as the ECB reaffirms more rate cuts to follow next year. That sees traders pricing in ~89% odds of a rate cut for January for now. Meanwhile, the Fed is surely going to cut rates by 25 bps this week and perhaps pause in January. That’s the bigger known unknown right now and traders are waiting for that before reacting.

As such, we’re caught in a bit of a rut for EUR/USD with price action pinned down by key near-term levels as seen above. The 200-hour moving average (blue line) in particular is holding back any upside moves for the time being. That is seen at 1.0525 currently, coinciding with large option expiries on the day.

Put together, that should likely keep a lid on price action at least for European trading later. The key risk event today will be the US retail sales data.

But in the context of this week, traders are all looking to the Fed for the next set of clues. As such, we might not get any meaningful or lasting moves until we hear from the Fed statement and Powell on late Wednesday.

This article was written by Justin Low at www.forexlive.com.

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Articles

ECB’s Rehn: The direction of our monetary policy is clear

The speed and scale of rate cuts will be determined in each...

Germany December Ifo business climate index 84.7 vs 85.6 expected

Prior 85.7Current conditions 85.1 vs 84.0 expectedPrior 84.3Expectations 84.4 vs 87.5 expectedPrior...

EURUSD Technical Analysis – Eyes on the FOMC decision

Fundamental OverviewThe USD continues to consolidate around the highs except against the...

The bond selling continues ahead of the Fed tomorrow

It is rather puzzling when you try and quantify the move here...