The European currency against the dollar rose for a third day in a row, getting support from the general improvement in market sentiment. During the Asian session on Wednesday, EURUSD is trading above 1.11, while waiting for the Fed's decision on the key interest rate, which will be taken today at 21:00 GMT. Interest in the euro continues to heat up the prospect of a trade agreement between the US and China. Earlier this week, Donald Trump has confirmed his intention to discuss the final details of the agreement with Chinese President Xi Jinping at the APEC summit in November.
In addition, it became known that the US is preparing an expanded list of Chinese goods, which would be exempt from import duties increased. Earlier, representatives of China also allowed the possibility of a breakthrough in the negotiations at the forthcoming summit in Chile. However, given the past experiences of failed negotiations between the US and China, which are at least 10 times over the last year trying to reach an agreement, there is a high probability that this time the meeting did not bring the proper result. In other words, it is advisable to underestimate the probability of such an outcome.
Today, the role of the main market of the catalyst is given US regulators, who will review the key interest rate again. Recall from the American regulator expected to reduce the rate from 2% to 1.75%, which could weaken the dollar. In this scenario, the EURUSD will get a chance to recover to 1.1150 where it is better to sell as early as tomorrow traders will again turn our attention to the weak statistics from the EU.
EURUSD SellLimit 1,1150 TP 1,1010 SL 1,1190
Analytical reviews and comments reflect the personal opinion of the authors and are not a recommendation to trade. Author trader analyst Artem Deev company AMarkets. The social network of Forex traders shall not be liable for any damages in case of a vision materials