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| EUR/USD Could Rally with Potential Fed Announcement - Scotiabank Reports |
Scotiabank economists predict that the EUR/USD pair will rise if the Federal Reserve decides to make any changes at its Wednesday monetary policy decision. Currently, the pair is starting the week on a strong note.
The economists suggest that a course of more range trading is the probable outcome for now, but if the Fed announces any changes, the EUR/USD pair could see gains. The announcement would come after the European Central Bank delivered last week.
Currently, there is weak trend momentum on the short intraday/daily DMIs, which suggests that the EUR's roughly sideways range during February and March should continue a bit longer. However, if EUR gains slow down above 1.07, it could see some firm resistance around 1.0750/60.
Intraday support is currently at 1.0625/30. It remains to be seen what will happen with the EUR/USD pair following the Fed's upcoming decision, but Scotiabank economists are keeping a close eye on potential changes that could impact the markets.
