The Euro has been settling into a tight range ahead of the Federal Reserve meeting outcome tomorrow
A lackluster session that completely lacked direction - this is how we can describe trading today in the Euro to the US dollar. While we will remain focused on the outcome of tomorrow's meeting it is worth to take a look at the moves that happened today.
Good data out of Germany from the ZEW institute survey was not enough to give fresh impetus to buy the pair. US data proved to be solid, albeit inflation numbers were subdued. For now we advocate to buy calls on an hourly basis around 1.3725-30, but only in the European morning.
The pair kicked off trading in Europe with a negative tone. Just before London the pair hit levels just above 1.3780 and sold off after that. The German data spiked it higher but not above previous highs.
The pair kept going lower until disappointing CPI numbers have hit the wires at 13:30 GMT. The single European currency tried to stage a rally again, but faltered during the Wall Street open which was followed by positive housing price data.
The pair marked its bottom around 1.3720 and we feel that levels around 1.3720-25 or even 1.37.30 might be good buys of calls on an hourly basis for tomorrow's European session. Once the US trading kicks in we would definitely stay on the cautious side before the FED announces its decision.
Overall we don't expect the US dollar to rally unless we get some substantial surprise from Ben Bernanke and company. The press conference will be key and we will be following it live and posting updates in our forum, stay tuned to Binaryoptionpost for more.