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EUR/USD Today Technical Report 28/04/2016


EUR/USD tumbled after the Fed rate decision and then shot back higher as the statement disappointed investors who expected a hint for a June rate hike. On balance, the pair ended trading at the midpoint of Wednesday’s range, close to the level ahead of the decision. Given the markets indecisive mood, I would prefer to sit on the sidelines until the dust is settled and we get a clear directional sign on the rates near term path. During the early European morning Thursday the pair seems to be locked within the 1.1330 (R1) resistance and 1.1270 (S1) support areas, where a break in either direction is likely to determine the near term bias. Our short-term momentum indicators support this notion. The RSI lies just above its 50 line pointing sideways, while the MACD, just below its zero and trigger lines is pointing sideways as well. As for the broader trend, EUR/USD is still trading within a wide range between the 1.0800 key obstacle and the psychological area of 1.1500. As a result, I would consider the longer-term path to be sideways.



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