Capitol Academy brings you the latest technical analysis on the EUR/USD pair for the December 18th in this video.
EUR/USD — The US Dollar steadied against the Euro with Investors waiting for a decision from Federal reserve about when it starts reducing its $85 billion Bond buying program. The Federal Open Markets Committee will release a policy statement later on the day followed by Fed Chairman Ben Bernanke News Conference half hour later. The recent round of better than expected Economic data from US has raised expectations that Fed may decide to start scaling back its Monthly assets purchase as of today. The EUR/USD remains in a range trading ahead of the FOMC decision due later today. This data will have greater impacts on the market.
As we can see on the daily chart, the EUR/USD prices are trading within a major ascending channel, also within a small correction sideways channel. This confirms the bullish trend on the short term trading. However on the medium term trading we expect a sharp drop off of the pair. We also draw the attention of our dear traders that the main driver of the market now is the Fed decision and its impacts. So we recommend you to monitor cautiously the news and not to enter the market today due to high volatility and uncertain movement to the prices. Our expected scenario is that the Fed will taper the Quantitative easing program. Accordingly the US Dollar will rise against the Euro and its major counterparts. A breakthrough the second support level of 1.6342 to the downside will push the price to decline sharply, however if the EUR/USD will remain trading above the 1.37 level, this will confirm the bullish trend in the price and it may test the 1.38 level.
Posted on Forex Video Zone.
(Visited 4 times, 4 visits today)