The EURUSD is stretching to a new session high in the last few minutes as early sellers in the North American session could not gather any momentum support in that direction. Sellers had their shot. They missed.
The trading range has extended to about 24 pips (30 pips now) which is still well below the 63 PIP average over the last trading month.
There is room to roam.
On the top side:
- The swing lows and highs from September 7 and from Friday's trade, come in at 1.0687.
- Above that is the falling 100 hour moving average of 1.0696
- The 200 hour moving average comes in at 1.07083
With the average trading range at 63 pips over the last month of trading, all of those targets are within the realm of possibilities.
Having said that the pips are hard to come by today as markets await the key Fed decision on Wednesday.
The Federal Reserve is expected to keep rates unchanged but may also target a another 25 basis point hike between now and the end of the year. The Fed will release their latest dot plot when they announce, and also their central tendencies. The last dot plot had the Fed targeting 5.6%.
Recall last week (on Thursday,, the ECB raise rates by 25 basis points, with ECB's Lagarde saying that they may be not be done with their tightening bias. The EURUSD moved sharply lower on the day despite the hike as traders saw the hike as a further precursor to slower growth ahead. The EURUSD traded to the lowest level since March, taking out the end of May low at 1.0635 by about 4 pips on Thursday.
On Friday the price it did rebound higher extending to a high of 1.06875 before rotating lower into the close. Buyers are now extending higher.