EURUSD Outlook: Euro Extends Advance ahead of FOMC Minutes

Technical analysis of Forex market

The Euro remains firm at the beginning of the US session on Wednesday and pressuring 55SMA barrier t 1.1625, after bullish acceleration in European session broke above pivotal Fibo barrier at 1.1575 (61.8% of 1.1745/1.1300). Strong bullish tone extends into fifth straight day, marking nearly 3% advance from 15 Aug low at 1.1300. Momentum broke into positive territory, generating bullish signal but slow stochastic crested deeply in the overbought territory, partially offsetting positive impact. Firm break above 55SMA (also former high of 08 Aug) would generate bullish signal for extension of advance from 1.1300 towards daily cloud base at 1.1687. Broken 30SMA offers initial support at 1.1587, followed by broken Fibo barrier at 1.1575, which are expected to keep the downside protected. US housing data are in immediate focus (existing home sales 0.6% f/c vs -0.6% prev) ahead of FOMC minutes which are expected to generate fresh direction signals.

Res: 1.1625; 1.1640; 1.1687; 1.1745
Sup: 1.1587; 1.1575; 1.1538; 1.1523