EUR/USD ignores the excellent ZEW survey, traders expect the Fed on a firm footing

The ZEW index of business climate in German for the month of September has been the occasion of a very pleasant surprise, going back to -22.5 points against -38 points early and -44.1 points in the previous month.

However, the EUR/USD pair shows no particular reaction in the face of these figures. Given the disappointing data from Germany this past week, good news, isolated does therefore not seem sufficient to boost the Euro.

But mostly, traders prefer for the moment to stay on the sidelines before the Fed meeting tomorrow, which will be without any doubt the most important event of the week for the Dollar, and therefore for EUR/USD.

The market expects a rate cut of 0.25%, but the certainty of investors in this regard has dropped sharply over the past few days, with the help of the rise in oil prices and the improvement of relations China-USA, which is a surprise hawkish (no rate cut) is not ruled out.

In this case, we should expect a strong rise in the Dollar, and therefore to a steep decline in the EUR/USD.

From a graphical point of view, we rappellra that the EUR/USD weakened yesterday, actively testing the psychological support key 1.10 since yesterday after-noon. A confirmation of a break below this level could put in the line of sight the lowest annual to 1.0925.

The increase, 1.1050 is the first resistance to take into account, but only a return to the top of the summit last week at 1.1110 certify sufficient to the domination of the vendors so that we can consider buying.

In this case, the peak of the August 25, to 1.1165, the psychological threshold of 1.12 and the resistance of 1.1250 will be the first targets upside potential.

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