The EURUSD has moved sharply higher on the back of the CPI data. The move earlier today, found sellers initially ahead of the 200 hour MA at 1.09326. However, the corrective move lower also found support buyers against the 50% midpoint of the June trading range at 1.08175. That gave the buyers a go-ahead to push higher.
The move to the upside has extended up toward 1.0850, that is just short of a swing area between 1.08538 and 1.08617. Ahead of the FOMC rate decision that swing area should find some profit taking after the sharp move to the upside off of the CPI data.
Of course, the expectations are for the Fed to be a little bit more dovish (higher EURUSD?). However, risk is increased through the FOMC rate decision which may lead to some sellers and lightening-up of positions.
This article was written by Greg Michalowski at www.forexlive.com.
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