Forex News: The momentum created by the Fed Meeting slowed down yesterday and the pair moved above the psychological level at 1.1900. The session was bullish but bearish pressure is still high.
After the failed break of 1.1875, the pair climbed above 1.1900 and seems headed for the 50 period Exponential Moving Average. However, it must be noted that the last bullish candles are showing long wicks and price lacks upside momentum, so we may very well see a drop even before the 50 EMA is reached. The bias remains bearish but the pair is not in a downtrend.
At 8:00 am GMT the European Manufacturing and Services PMIs are released, showing the opinions of purchasing managers regarding economic and business conditions in their respective sectors. The indicators have a low to medium impact on the Euro, with higher numbers strengthening the single currency. The forecast for the Manufacturing PMI is 57.2 and for the Services PMI is 54.7.
At the same time (8:00 am GMT), ECB President Mario Draghi will deliver a speech at the Trinity College, in Dublin. The impact will depend on the matters discussed but caution is recommended whenever heads of central banks speak publicly.
Yesterday’s trading session was slow, with price consolidating above 1.3450 support. The economic calendar didn’t hold any important events and this contributed to the slow movement of price.
The overall trend is clearly bullish but the latest momentum is bearish and now the pair is consolidating (moving in a range) in close vicinity of 1.3450 support. We already saw a failed attempt to break the level so if it won’t broken on a second attempt, the pair will probably be headed higher or it will remain in a range. If 1.3450 is broken, the 50 period EMA will become the first target.
British Prime Minister Theresa May will speak today in Florence on the post-Brexit relationship between Britain and the European Union. The exact time of the speech is not known at the time of writing, so we recommend keeping an eye on our Economic Calendar for updates.