The Pair Gets a Lift With the Focus Shifting to Federal Reserve
- Take Profit: 1.0575
- Stop Loss: 1.0680
- Timeline: 1-2 days
- Buy stop: 1.0650
- Take Profit: 1.0750
- Stop Loss: 1.0550
On Monday morning, we saw the pair price moving upwards crossing the key resistance level at 1.0612. The MACD is still at the neutral point but the RSI is above the neutral point at 50. The price level has moved above the 25-day and 50-day MAs and has also moved above the upper side of the descending channel pattern. But we suspect there will be some action on Tuesday which could possibly result in the pair retesting the support at 1.0575.
On Fundamental level, the focus has shifted to the Federal Reserve as the much awaited statement of the Fed chair Powell, will be out on Tuesday. ECB’s Christine Legarde will also clarify their policy and these events will greatly influence the major pair’s price. The Fed is likely to move forward with rate hikes as that is the most probable action at the moment.