EUR/USD finds support near 1.14, eyes on FOMC statement and Powell speech

EUR/USD looks to snap 4-day winning streak.
US Dollar Index clings to modest gains above 95.80.
ADP reports a higher-than-expected increase in private sector employment.

The EUR/USD pair lost its traction in the second half of the day and fell to a session low of 1.1407 before going into a consolidation phase ahead of the FOMC announcements and Chairman Powell's press conference. As of writing, the pair was down 0.1% on a daily basis at 1.1422.

Following a subdued trading action during the European session, the pair came under a renewed pressure as the US dollar gathered strength on the back of upbeat ADP labour market data, which showed an increase of 213K in private sector employment vs 178K expected. After coming within a touching distance of the 96 mark with the knee-jerk market reaction, the US Dollar Index erased a small part of its gains and was last up 0.08% on the day at 95.88.

Earlier today, the data published by Germany's Destatis showed that the annual CPI in Germany slumped to 1.4% in January (preliminary) to miss the analysts' estimate of 1.6% to weigh on the shared currency. Additionally, the European Commission's monthly report revealed that the Consumer Confidence Index improved slightly to -7.9 from -8.3 while Services Sentiment, Business Climate, and Industrial Confidence indexes all retreated in January.

Markets don't see the FOMC announcing any changes to its policy rate, which now stands 2.25% - 2.5% range. Previewing the FOMC meeting, "“Keeping in accordance with its most recent communications, which emphasized the central bank’s wait-and-see approach, the Fed will stay on the side-lines this time. It will still be interesting to hear Jerome Powell's comments as he gives his first press conference of the year,” said NBF analysts.

FOMC Preview: What 8 major banks are expecting from January meeting?

Key technical levels

EUR/USD

Overview:
    Today Last Price: 1.1422
    Today Daily change %: -0.10%
    Today Daily Open: 1.1433
Trends:
    Daily SMA20: 1.1415
    Daily SMA50: 1.1391
    Daily SMA100: 1.1448
    Daily SMA200: 1.1571
Levels:
    Previous Daily High: 1.1451
    Previous Daily Low: 1.1411
    Previous Weekly High: 1.1418
    Previous Weekly Low: 1.1289
    Previous Monthly High: 1.1486
    Previous Monthly Low: 1.1269
    Daily Fibonacci 38.2%: 1.1436
    Daily Fibonacci 61.8%: 1.1427
    Daily Pivot Point S1: 1.1412
    Daily Pivot Point S2: 1.1392
    Daily Pivot Point S3: 1.1372
    Daily Pivot Point R1: 1.1453
    Daily Pivot Point R2: 1.1472
    Daily Pivot Point R3: 1.1493

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.