EURUSD
A pair of EUR / USD shows a slight increase. Experts note that the anticipation of the Fed meeting, investors decided to zabelže profits on the dollar and slightly adjust their positions. However, unlikely to increase money to continue, given the expected "havkish" tone the Fed, which should support the dollar. The market is almost certain that today the Fed to raise short-term interest rates. According to the futures market, the probability of monetary tightening Federal Reserve at the December meeting, with 91.0% compared with 93.2% the previous day. Raising rates generally support the US currency, which makes it attractive for investors who seek yield.However, it is still unknown how aggressively the Fed will raise rates in the coming months. Strengthening of the dollar and the increase in borrowing costs can cool economic activity, which will ease the pressure on the central bank in the direction of a rapid tightening. In addition, some market participants believe that the optimism about economic policy Trump disappear when his administration is doing its work and that it meets all what has been assigned. In addition to the Fed meeting, today investors will monitor the data from the euro zone. Economists forecast that the growth of industrial production in October was 0.2%, after falling 0.8% in September. In addition, investors will pay attention to US statistics on retail sales and industrial production. Strong resistance - $ 1.0872 (maximum 8 December). Substantial support - $ 1.0505 (minimum 5 December).
The pair is trading lower than 1.0650 level proir to the release of the Fed monetary policy meeting results. If the results are positive for the US dollar, the pair can turn downwards, which is to be triggered by the Fed's representative announcement indicating the willingness of the institution to raise the interest rate next year, should the need for such measure become evident. The reversed situation will put the US currency under a not-so-critical pressure.
The price is higher than the middle Bollinger band, higher than SMA5 and SMA14. RSI is trying to continue rising. Stoch have turned upwards.
Trading recommendations:
Wait for the results of the Fed's meeting. Sell the pair if the news are positive for the US dollar and considering a probable fall to 1.0530.
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