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EUR/USD forex signal - Fed speeches by FOMC members - 26 Mar 2018

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It is a slow Monday with not many economical details on the agenda today. For the most part, the Asian and European trading sessions are likely to pass by uneventfully. Focus therefore turns to the Fed speeches that are due by a number of FOMC members during the U.S. trading session.

Investors will clue into the Fed speeches today given that the FOMC hiked interest rates last week by 25 basis points. Although the Fed signaled hawkish statement, the press conference held by Fed Governor Powell managed to offset the hawkish outlook.

As a result, investors will be looking for more clarity from the Fed speeches today which includes NY Fed President William Dudley along with other FOMC members that includes Loretta Mester and Quarles. Mester, who is a known hawk in the FOMC could potentially argue for faster pace of rate hikes.

This could cause a mixed reaction from the markets given the lack of any fundamentals to go by. Therefore trading today is likely to be confined to technical levels more than anything.

The U.S. dollar has also come under pressure from the developments from Washington which recently included President Trump announcing new tariffs for imports from China. Markets are concerned that this could slowly escalate into a global trade war which could dent the positive recovery seen since last year.

The forex signal for the day is EURUSD. The currency pair has been trading within a medium term range of 1.2285 and 1.2413 levels of support and resistance respectively. We expect that a breakout from this range could potentially set the stage for a new trend in the markets.

Given that Friday's price action formed an inside bar, we expect to see a potential upside breakout from here. Therefore, we are looking to go long on EURUSD on the upside momentum. Going long at 1.2363 targeting 1.2400 is ideal with stops at 1.2355 as we expect to see the EURUSD close higher on the day.

forex signal eurusd 26 mar 2018

Disclaimer: The article is written for informative purposes only and it is not financial advice. The author does not have any position in the currency pairs mentioned, and no plans to initiate a position. He wrote the article himself and expressed his own opinions. Readers should not treat any opinion expressed by the author as a specific inducement to make a particular trade or follow a particular strategy, but only as an expression of his opinion. All risks and coasts associated with online trading are your responsibility.