- Mizuho Bank (based on Bloomberg)
Even though the most traded FX cross was little changed on Tuesday, trading surged to one of the highest levels in about 30 days. EUR/USD is awaiting the scheduled FOMC rate decision later today, while being supported by the cluster at 1.1062/21. This zone is exposed to risks today, in case Janet Yellen releases a more hawkish statement than expected. Although, there is another support in face of the 55-day at 1.0991, and only consolidation under here will neutralise our mid-term positive outlook. Meanwhile, the bulls keep aiming at the monthly R1/upper near 1.1230.
Judging from the present distribution between the long (42%) and short (58%) positions in the SWFX market, development has been negative over the past 24 hours.