EURUSD Ready for a Rebound to 1.09, Awaiting the FOMC!

12 ธ.ค. 2023

The EUR/USD exchange rate has undergone changes, reaching a minimum of 1.0741 before recovering to 1.0765 in a quiet trading session. The US Dollar Index has recorded modest gains, supported by an increase in Treasury bond yields. Investors are awaiting significant economic reports and central bank meetings. A decline in Economic Sentiment in the Eurozone is expected on Tuesday according to the ZEW survey. The European Central Bank (ECB) will meet on Thursday, but no changes in interest rates are expected; discussions will focus on reinvestments from the pandemic emergency purchase program (PEPP). Currently, markets are in a consolidation phase, awaiting new catalysts. The EUR/USD is confined to a narrow trading range for the second consecutive day, with a technical configuration suggesting caution. Traders are now looking to the US Consumer Price Index (CPI) for new directions, considering the accommodative outlook of the Fed/ECB. The EUR/USD is trading around 1.0760, near the 100-day Simple Moving Average (SMA). In the short term, the risk is tilted to the downside, but a break above 1.0780 could improve prospects, targeting resistances at 1.0800/1.0805. Conversely, a drop below 1.0740 could lead to further weakness, with supports at 1.0715 and 1.0690. In the United States, the Consumer Price Index (CPI) is expected on Tuesday, but it is not expected to significantly impact Federal Reserve expectations, whose meeting begins on Tuesday. Wednesday's announcement is expected to focus on new economic projections.