EUR/USD traded flat after a sharp sell-off with a recent low of 1.108107 and currently trading around 1.08277.
FOMC member-
Lorie K. Logan, President of the Federal Reserve Bank of Dallas, has stressed the importance of slowly reducing interest rates due to economic uncertainties. In her speech at a recent conference, she highlighted the need for a careful approach to reach a more neutral rate, which can help manage risks related to inflation and jobs. While she described the economy as "strong and stable," she also pointed out that there are still uncertainties, especially concerning the job market and inflation, which could rise again despite recent decreases.
ECB Policymaker Speech-
Müller has mentioned that he's not completely ruling out another interest rate cut in October. However, he's worried about not having enough data to make a clear decision. He said, "It's too early to take a strong position on the October interest rate," and suggested that we might have a better understanding by December when more detailed economic information is available.
Technical Analysis:
Intraday bias remains bearish as long as resistance holds at 1.1000. The pair is trading below the 34 and 55 EMA, as well as the 200 and 365 Hull moving averages on the 4-hour chart.
- Near-term resistance is found around 1.08765; a breakout above could lead to targets at 1.0910, 1.0960, 1.1000, and 1.1070. Major bullish continuation is only anticipated above 1.1150, which could push the pair to 1.11780 and 1.12150.
- Immediate support is at 1.0800; breaking below this level may drag the pair down to 1.0770 and 1.0700.
Indicators (4-Hour Chart):
- CCI (50) - Bearish
- Average Directional Movement Index - Neutral. All indicators signal a mixed trend.
It is advisable to sell on rallies around 1.08780-1.0880, with a stop-loss set at 1.0925 and a target price of 1.0800.
