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| EUR/USD four-hour chart, source:FXDD.com |
cf. [EUR] Bearish EURO 2021 0720
cf. [EUR] Falling EURO 2021 0713
Gjallarhorn keeps the long position of EUR at the CME. The positions are under the loss.
One of the major currency pair EUR/USD rebounded from the downward trend. The pair exceeded the short-term bearish trend line and rose along the upper band of Bollinger Bands, touching 120 exponential moving average in the four-hour chart.
It was supported on 20 moving average while its correction and kept the rising.
It also attempts to exceed 20 moving average in the daily chart. If it succeed, the currency pair could rise to the upper band, 1.18836 in the daily chart and give the hint the bullish trend.
But there is always the possibility of the correction as the euro tries to exceed the 120 exponential moving average or the Europe session begins.
While the correction since late May, the euro has been supported on the bottom band. It implies the bearish flow is eased up. If the rebound is successful, the investors can think the euro is supported on 1.1750.
And the possibility of forming Double-tops pattern still remains, which supporting bearish trend in the weekly chart. The pattern is likely to pull the EUR/USD down to 1.16 and 1.13 in that order.
Dollar Index tracking the greenback against the basket of six major currencies retreated ahead of FOMC. It fell 0.18 percent to 92.447. It is expected the market participants just watch the market before the Fed Chair Jerome Powell's press conference after the FOMC meeting.
The market watch the FOMC's action against the rapid inflation and the spread of COVID-19 delta variation.
The FOMC meeting result is released at 18:00(GMT), Wednesday and Fed chair's press conference is planned at 18:30(GMT).
The bond yields of the United States and Germany were downward. It is reported that the market participants think it is due to the central bank's quantitative ease and the concern of delta variation's spread.
But the US economy indices show the economy recovery in the US. The US CB Consumer Confidence hit 129.1, which is high since June 2020.
The International Monetary Fund anticipated the global GDP in the year to 6 percent keeping the previous outlook.
And Yonhap Informax, economy news service reported, the investors bought the greenback more from the last week. It diagnosed the global economy recovery and Fed's possible tapering made them buy the dollar.
Meanwhile, Goldman Sachs adjusted the GDP growth of Southeast countries due to the spread of the COVID-19 delta variation last week. It lowered the anticipated Indonesia's growth from 5.0 percent to 3.4 percent, that of Malaysia's from 6.2 percent to 4.9 percent and that of Singapore from 7.1 percent to 6.8 percent.
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