EURUSD has been around a key level 1.16 for several weeks. Price couldn't break above the 1.17 level, going back down below the so called support level (1.16). Despite the fact that this zone hasn't been tested enough to consider it now a resistance, fundamentals might give us this impression. So what can we expect from the EURUSD:
Fundamentals: Speculations are expecting Tapering process to be announced by Fed Jerome Powell tonight, lowering its spending on US investments. Starting TAPERING means starting a 6 to 7 month process in which the Federal Reserve suspends all of its financial assistance to support the US economy. The first effects will be on the USD ,Stock indices and Bond Yields, and finally the JPY and Gold. Normally, we can see the strengthening of the #USD and the weakness of other commodities and currencies.
Technically: Price is around the 1.16 level. Double top might be forming, indicating the incapacity of the price to break previous highs and thus continuing its bearish overall trend to new lows.
Fundamentals: Speculations are expecting Tapering process to be announced by Fed Jerome Powell tonight, lowering its spending on US investments. Starting TAPERING means starting a 6 to 7 month process in which the Federal Reserve suspends all of its financial assistance to support the US economy. The first effects will be on the USD ,Stock indices and Bond Yields, and finally the JPY and Gold. Normally, we can see the strengthening of the #USD and the weakness of other commodities and currencies.
Technically: Price is around the 1.16 level. Double top might be forming, indicating the incapacity of the price to break previous highs and thus continuing its bearish overall trend to new lows.