After accenting his fall until’` a hollow at 1.1107 on Friday, EUR/USD has been stabilizing since the Forex reopened on Sunday night, trading around 1.1125 at the time of writing this Monday morning. marked by a strengthening of the Dollar, linked to rate hike expectations for the Fed meeting scheduled for this Wednesday.
Fed, ECB and US GDP on the program in a very busy calendar; for Euro Dollar
Indeed, the Investing.com Fed Rate Barometer currently shows that the market is takes into account a probability 99.2% that the Fed raised its rate by 0.25% on Wednesday. In this context, forex traders will be most interested in the clues that the central bank will provide regarding the direction of monetary policy for the rest of the year.
>> Follow the evolution of market expectations live. for FOMC meeting with Fed Rate Monitor Investing.com.
If the FOMC sends signals in favor of a further rate hike, the Dollar should strengthen, at the expense of EUR/USD. Conversely, indications suggesting that the rate hike is over for this cycle would weigh on the greenback, and send the Euro Dollar higher. to Watching this week will be preliminary second-quarter GDP, which consensus calls for 1.8% growth, down from 2% previously.
Turning to Monday, EUR/USD traders’focus will be mostly on Europe, with July's preliminary PMI indices on the morning schedule.Disappointment on these indicators could weigh on expectations for a rate hike for Thursday’s ECB decision, and push the Euro down.
Technical thresholds at; watch on EUR/USD
From a graphical point of view, it will be recalled that the Euro Dollar is currently in a corrective phase which has been taking place since the annual peak marked by to 1.1277 on July 18.
In the immediate term, EUR/USD is facing an uptick. immediate support in the area of 1.11. A break below this threshold would then directly expose the major psychological threshold of 1.10. Finally, in the event of a rebound in EUR/USD, the threshold of 1.12, the yearly high of 1.1277 and the psychological threshold of 1.13 are the first potential obstacles to the recovery. take into account.
EUR/USD stabilizes at the start of a very high risk week
