At the time, 11 out of 17 policymakers felt that additional rate hikes were not necessary in 2019. In May, Fed Chairman Powell stated that policy stance is appropriate for the time being and that the CB did not see a strong case for moving in either direction. The shift in opinion is due to concerns for low , household spending and business investment.
How the USD reacts will depend on the sentiment of Powell’s statement.
If the statement is HAWKISHand positive, with strong emphasis that the economy is growing, unemployment is low, is stable and there are no immediate plans to change interest rates will be a good recovery for the USD and may bring EUR/USD to the area of 1.10 which has proven as a strong in the past.
If on the other hand Powell is DOVISHand does hint at a possible rate cut we could see the Dollar fall sharply and EUR/USD could break above the 9EMA in the area of 1.1350.
Looking at the picture from the technical side, on a 1DTF – we see that the overall trend is . Switching to a 4HTF, we see that the pair is trying to break the 9EMA up and has left the oversold zone, lines have intersected as well but we dont see a reversal on the . All things considered we do not have a clear signal at this time.
Currently in our opinion the short term future of EUR/USD depends mainly on the FOMC meeting.