Fundamental Analysis

• Major U.S. Stock Indexes Gain Significantly; Possible Suspension of Interest Rate Hikes Drives Gains
• Crude oil sharply lower, driven down by lower global demand and higher supplies
• Eurodollar little changed; German CPI expected to slow
• U.S. FOMC meeting in the spotlight, dollar weakening on speculation of a rate hike halt

EURUSD Technical Analysis

The Eurodollar has been moving sideways and remains firm on the upside and downside. The dollar continues to weaken due to growing expectations of a halt in U.S. interest rate hikes. Analyzing currency strength and weakness, the dollar is weakening against the euro, and the euro-dollar can be judged to be in a favorable position to rise.

The $1.080 area is a round number and an important milestone resistance area to watch.

Day Trade Strategy (Hourly)

The day trade policy is to buy on the push. Today’s Eurodollar pivot point is $1.0760; drawing the 24 moving averages (moving averages over the past day) on the hourly chart confirms that the direction is gradually turning up and the downside is also cutting off.

The market is range-bound in the medium to long term, but in the short term, we can look for buying opportunities. The $1.078 level is the level where the pair has fallen back three times in the past, and a large resistance zone is ahead at the $1.080 level.

Multi-time frame analysis

When the 24 moving averages are drawn on the 4-hour chart as a multi-time frame analysis, the candles are above the moving averages and the moving averages are also pointing upward. Both the 1-hour and 4-hour charts are turning from a downtrend to an uptrend. Although the market will not settle down until the U.S. FOMC meeting, at least in the short term, we would like to trade on the upside.

Support and Resistance Lines

The resistance line to be considered in the future is as follows

USD 1.080 – Round number / Major resistance zone
USD 1.073 – Support zone

Market Sentiment

EURUSD　Sell: 36% Buy: 64%

Today’s Important Economic Indicators

*Trading advice in this article is not provided by Milton Markets, but by Shu Fujiyasu Jr., a certified technical analyst.