The EUR/USD is trading in the green on the short term and approached and important confluence area. Price is narrowing on the short term, but I hope that we’ll have a clear direction very soon. Technically is somehow expected to drop on the short term, but remains to see what the FOMC will bring tomorrow. There are some rumors that said that the Federal Reserve will hike the rate in December even if the traders are skeptical. EUR/USD will be driven by the fundamental factors tomorrow, so you should be very careful because a huge volatility could ruin your account.
Will be better to stay away from trading during the FOMC Rate Statement and during the FOMC Press Conference because anything could happen.
The dollar stays lower versus the Euro because wasn’t impressed by the United States data, the Building Permits have increased from 1.23M to 1.30M in August, beating the 1.22M, while the Import Prices rose by 0.6% in August, beating the 0.4% estimate, but wasn’t enough to save the greenback from the downside. The Current Account dropped unexpectedly, from -114B to -123B, while the Housing Starts were reported at 1.18M, higher versus the 1.17M estimate.
Price is trading in the green and extends the latest gains. Is almost to hit the confluence area formed between the upper median line (UML) of the ascending pitchfork with the upper median line (uml) of the minor descending pitchfork. A breakout above this confluence area will accelerate the rally, while a rejection will force it to turn to the downside again.
The current rebound is natural after the failure to retest the median line (ml) of the minor descending pitchfork. It was somehow expected to drop after the false breakout above the upper median line (uml) and after another failure to close above the sliding line (ascending dotted line). Unfortunately, the fundamental factors will take lead tomorrow and will drive the rate, remains to see the direction. Personally I believe that will have a clear direction and a trading opportunity since Thursday or Friday.