The Euro as of now is continues to trade flat but maintains a positive bias against the Dollar in the early afternoon session. The Euro which saw some bargain buying at $1.24708 is currently facing significant resistance $1.25445 on the upside. The Greenback, which has been in a strong upwards trend displayed some weakness during this morning’s trading period due to traders booking some profit.
Many analysts believe trading will be lacklustre throughout most of the day as everyone awaits for the upcoming FOMC Meeting Minutes scheduled for 20:00 GMT. It is widely expected that the Federal Reserve will indeed stick to its current stance to keep interest rates at bay. Any inclinations towards hiking interest rates in the near future should be considered tremendously positive for the USD and we will almost definitely see a swift sell-off in the Euro.
Investors should keenly pay attention to the Building Permit numbers, which should be released by 14:30 GMT in order to understand the underlying strength in the U.S. Housing sector which is a key economic indicator.
When looking at the hourly chart for the EUR/USD, the currency pair traded close to its resistance zone near $1.25445 for most of the early morning. Its momentum indicators meanwhile, continue to trade in bullish territory, displaying strong bullish momentum. The EUR/USD finally moved above its 100-day moving average but its relative strength index is showing its first sign of feebleness.
Long the EUR/USD if it moves above $1.25445 for an intermediate target at $1.26125 with a strict stop loss below $1.25154.
Short the EUR/USD if it falls below $1.25154 for an intermediate target at $1.24708