Good day forex traders and readers.
Welcome to the new month and I hope it will be a great one for all of us. May the pips be with all of us!
We noted a narrow range of trading for the EUR/USD recently due to apprehension regarding the FOMC and ECB meetings. Investors do not know for certain the agenda and outcome, hence the hesitation.
Looking at the EUR/USD 4 hourly chart above we note that the currency pair is currently in a bearish stance. This is especially so in the past hour which is obvious if you were to zoom in to the hourly chart.
I expect the immediate support for now to be 1.3180. Immediate resistance may be 1.3240.
The FOMC event turned out to be rather uneventful as there was no apparent mention of the plans for quantitative easing tapering. Therefore it is still pretty much an unknown. The ECB in an announcement moments ago kept the minimum bid rate at the current levels. While this is expected, the European Central Bank president’s mention of low rates for the foreseeable future did dampen the risk appetite of investors thus probably applying a bearish pressure on the EUR/USD.
As we approach the Friday US Non-Farm Payroll event, I expect narrow trading conditions to continue as investors remain cautious.