EURUSD Chart Technical Outlook consolidates gains ahead of the Fed with 1,1150 on the bulls’ focus*
The Euro is trading within previous ranges with investors wary of risk amid the uncertainty about the size of the Fed rate cut later today. Futures markets anticipate a 65% chance of a 50 bps rate cut yet US data says otherwise.
Retail sales increased 0.1% in August, confirming that consumption remains solid. The Atlanta Fed GDPNow raised its Q3 growth forecast to 3.0% from 2.5% and Industrial Production accelerated beyond expectations.
The bank’s decision and its forward guidance will determine the Dollar’s direction. A dovish Fed is likely to send the USD to fresh year-to-date lows but recent data suggest that a 25 bp cut is still possible and this option might send the Dollar rallying.
Technically, the pair maintains the bullish bias with downside attempts limited. The focus is on 1.1150 resistance ahead of 1.1200. Supports are 1.1070 and 1.1000.
