November 3, 2021

Patient Investors! EUR/USD Is Expected To Be More Vibrant Tonight

 The wait ahead of the FOMC’s monetary policy announcement seems to have sparked the USD to regain a strengthening pace after a slight decline earlier in the week.

The impact of the FOMC meeting is expected to be the focus following expectations that the Federal Reserve (Fed) may implement a reduction in bond purchases.

Investors may be looking forward to the US ADP NFP data for the private sector as well as the ISM survey services data which will be published tonight.

After starting a dismal performance at the beginning of the Asian session yesterday (Monday), the price movement on the EUR/USD chart was seen giving a bearish action at the end of the European session all the way to the New York session.

The price trend seems to have returned below the resistance level of 1.16000 as well as is making a new LH (lower high) to signal to continue the downtrend pattern.

That aspect can also be seen on deck as the price is still hovering at the Moving Average 50 (MA50) barrier level on the 1 -hour time frame and continues to move slowly in today’s (Wednesday) Asian session.

Investors will likely see and evaluate the 2021 lows recorded in October trading around 1.15300 if the price movement remains displaying a bearish trend.

While the support zone closest to the level of 1.15000 is likely to be able to be tracked if the price declines lower and subsequently the latest lows will be created again.

However, the nearest resistance zone at 1.16000 may be reached again if the price rises again and the surge will also signal a clearer movement.

An increase beyond the resistance zone will see the price signal to make a bullish trend change and is expected to test the SBR (support become resistance) zone of 1.17000.