Trading is hesitant early on Wednesday as investors awaited further guidance from the Federal Reserve on future U.S. rate rises to shed some light on how many times interest rates may go up this year.
Investors have shifted their focus to the two-day Federal Open Market Committee (FOMC) meeting that starts Wednesday. With a rate hike almost fully priced in, markets are focusing on whether the Fed will signal hiking rates four times this year, rather than the three times as indicated earlier in the year.
The Euro rose to three-week highs against the dollar last week after hawkish ECB comments fueled speculation that the bank could signal its intention to start unwinding its bond purchasing program.
Tomorrow’s meeting will hold some extra news about when the ECB cuts its quantitative easing program.
The Bank of Japan will also review its monetary policy at a two-day meeting that ends on Friday, but will likely keep its policy intact.
On the daily chart, we can see that the price is moving sideways between the resistance zone 84.4-84.15 and the support zone 81.2-80.5.
The price has now entered the red resistance area with a possible bounce.
Also, watch the ascending channel which has formed to be considered as a flag pattern. The pattern boosts the original trend which is a down one.
So, any bounce now with price action will push the price to fall.
On the daily chart, as we expected before, the price had made its way up to targets at the resistance zone 1.0815-1.0865, boosted by a BAT harmonic pattern.
The price has already made its retracement as we expected it to.
Bouncing from the support zone and the broken descending trend from the high of 2017, the price is supposed to continue its bullish movement up to the 1.1045 level.
But the price may correct to the level 1.0755 to find support by the Gartley harmonic pattern.
On the daily chart, as expected, the price made its way into the resistance zone of 1.289-1.298, almost reaching the key resistance at 1.309, with an approach from the descending trend line starting from the high of 2015, and the upper edge of the horn pattern.
The price is near the key resistance level 1.309, any bounce back from there would take the price firstly to the support level at 1.274.
On the daily chart, the pair had a correction to the 0.758 level supported by the resistance level 0.766 and the descending line from the high of 2018.
The price has bounced from the 0.758 level near the edge of the ascending channel.
So if the price could break the resistance 0.766 and the descending line, it may reach 0.774 which is a level with a combination of the upper edge of the channel and the broken uptrend.