#edgeforex #forex #market #trading #forecasting #eur #usd #currency #fed #america #ukraine #russia #austria #swedwn #cryptocurrency #bitcoin eur
The EUR/USD pair is trading near 1.1000 ahead of the Fed’s dovish hike. EUR/USD is currently trading at 1.0994.
The EUR/USD pair surged to an intraday high of 1.1024, but is now hovering around 1.1000 as US traders return to their desks. Financial markets are risk-taking in the hope that the Russian-Ukrainian crisis can be resolved diplomatically. However, EUR/USD still has limited bullish potential and is on the verge of resuming its decline.
The Kremlin sees a neutral Ukraine with its own army, modelled after Austria or Sweden. In addition, Foreign Minister Viktorovich Lavrov stated that some aspects of a deal with Ukraine are nearing completion. while The easing of tensions in the Eastern Europe crisis has pushed financial markets into risk-taking mode.
The US Federal Reserve is expected to raise interest rates by a quarter-point. Following the release of February Retail Sales, which were up a modest 0.3 percent but fell short of the 0.4 percent expected, the US dollar rose slightly. Nonetheless, Wall Street is expected to open with solid gains, following in the footsteps of its international counterparts. Meanwhile, US government bond yields continue to push the market higher.
As investors prepare for the US Federal Reserve’s monetary policy decision, the 10-year Treasury note yielded as much as 2.205 percent, but is now yielding around 2.17 percent. The central bank is widely expected to raise interest rates by 25 basis points, which is considered a dovish hike. The central bank will also release new economic forecasts, and market participants will be watching for any shifts in the dot-plot.
Before turning bullish, the EUR/USD pair has a long way to go. The daily chart shows that it is continuing to fall below a firmly bearish 20 SMA, while technical indicators are moving in the negative direction. Furthermore, the pair remains below the 38.2 percent retracement of its most recent daily slump at around 1.1070, implying that the current advance is merely a correction.
The 4-hour chart indicates a neutral-to-bullish bias, with technical indicators advancing within positive levels but without momentum. The 20 SMA is flat, converging on the 23.6 percent retracement of the previously mentioned decline in the 1.0960 price range. A break below the latter could reintroduce the pair into a bearish trend.