The Euro is trading slightly lower on Wednesday ahead of the release of the latest U.S. Federal Reserve Monetary Policy Meeting Minutes at 19:00 GMT. The minutes are expected to discuss why the central bank decided to shift policy from hawkish to dovish. However, investors will be looking for clues as to whether the Fed is considering halting its policy to reduce its balance sheet, which is a form of tightening. The decision to pause its balance sheet reduction plan will be perceived as dovish. This could weaken the U.S. Dollar against the Euro.
At 13:49 GMT, the EUR/USD is at 1.1336, down 0.0004 or -0.04%.
Daily Technical Analysis
The main trend is up according to the daily swing chart. The trend turned up on Tuesday when buyers took out the previous main top at 1.1342. A trade through 1.1234 will change the main trend to down.
The minor trend is also up. A move through 1.1275 will change the minor trend to down.
The main range is 1.1514 to 1.1234. Its retracement zone at 1.1374 to 1.1407 is the primary upside target. Sellers could show up on the first test of this area. This would form a secondary lower top. A move through 1.1407 will indicate the buying is getting stronger.
Daily Technical Forecast
Based on the earlier price action, the direction of the EUR/USD on Wednesday is likely to be determined by trader reaction to the uptrending Gann angle at 1.1354.
A sustained move over 1.1354 will indicate the presence of buyers. This could lead to a quick move into a resistance cluster at 1.1374. Look for sellers on the first test of this price. Overtaking it, however, could trigger an acceleration to the upside with the next target the Fibonacci level at 1.1407.
The inability to overcome 1.1354 will signal the presence of sellers. The daily chart indicates there is room to the downside with the next target angle coming in at 1.1294. Since the trend is up. Look for a technical bounce on the first test of this angle. If it fails then the selling is likely to extend into the next uptrending Gann angle at 1.1264.
This article was originally posted on FX Empire
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