Partner Center Find a Broker

We’ve got THREE Fed officials scheduled to give speeches later today!

How might their remarks affect EUR/USD price action?

Before moving on, ICYMI, yesterday’s watchlist looked at USD/CHF’s range support bounce and nearby area of interest . Be sure to check out if it’s still a valid play!

And now for the headlines that rocked the markets in the last trading sessions:

Fresh Market Headlines & Economic Data:

OPEC rumored to be considering production hikes

ECB official Centeno: Next rate hike could be smaller than 0.75%

New Zealand trade deficit widened from 1.696B NZD to 2.129B NZD in Oct

BOJ core CPI jumped from 2.0% to 2.7% y/y in Oct vs. 2.2% forecast

Japanese PM Kishida: Weak yen has both pros and cons

Chinese COVID cases rising, Guangzhou records over 8,200 new local cases

China to issue 200B CNY in special loans to support property projects

Upcoming Potential Catalysts on the Forex Economic Calendar:

RBA head Lowe’s testimony at 8:30 am GMT
Canadian retail sales at 1:30 pm GMT
U.S. Richmond manufacturing index at 3:00 pm GMT
FOMC official Mester’s speech at 4:30 pm GMT
FOMC official George’s speech at 7:15 pm GMT
FOMC official Bullard’s speech at 7:45 pm GMT
Australia’s flash services and manufacturing PMI at 10:00 pm GMT
RBNZ monetary policy statement at 1:00 am GMT (Nov. 23)

Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! 🔥 🗺️

What to Watch: EUR/USD

EUR/USD 4-hour Forex Chart

EUR/USD 4-hour Forex Chart

Will FOMC officials rock the markets even before the minutes of their latest meeting are released?

Policymakers Mester, George, and Bullard all have speeches lined up over the next few hours, possibly providing more insight on the Fed’s policy plans. After all, their testimonies are likely taking the latest batch of inflation figures into account.

Hints that the U.S. central bank is still open to maintaining its aggressive pace of tightening a.k.a. 0.75% rate hikes might mean more upside for the Greenback.

On the flip side, acknowledging that it’s high-time to pivot to a more subdued pace of rate increases could allow the dollar selloff to gain traction.

EUR/USD is currently retreating from its rally, inching closer towards testing the Fibonacci retracement levels and ascending trend line visible on the 4-hour chart.

This area of interest lines up with a former resistance zone around the 1.0100 handle and the dynamic support levels at the moving averages.

On that note, the 100 SMA is above the 200 SMA to signal that the uptrend is more likely to resume than to reverse. Also, Stochastic is already indicating oversold conditions or exhaustion among sellers.

If any of the Fibs are able to keep losses in check, EURUSD could make its way back up to the swing high and beyond.

Better keep your eyes peeled for reversal candlesticks suggesting that the correction is over!