EUR/USD eyes Brainard speech, trades flat in Asia

EUR/USD is doing very little in Asia, trading in the sideways manner around 1.1236 (38.2% of 1.0463-1.1714) as investors await Fed’s Brainard’s comments on interest rates.

Markets ‘Fed’ up of uncertainty

The ongoing speculation is that the Fed wants to hike when the market least expects it to raise rates. Fed Rosengren’s comments that the central bank avoiding to raise rates might affect a few asset classes adversely poured some strength into the USD on Friday.

Over the last couple of weeks, a series of contrasting speeches from Fed policymakers has left markets confused. The last word on fed policy goes to Fed’s Brainard, who is scheduled to speak today. Markets fear Brainard, a dove, may come out in favor of the rate hike.

From the view point of EUR traders, the whole Fed rate hike saga is nothing but a question whether Fed would do the dirty work/heavylifting on behalf of the ECB.

EUR/USD Technical Levels

On the upside, the single currency needs a break above the daily high at 1.1250 to see strength towards 1.1270 (Sept. 7th Low) and then the falling channel resistance at 1.1313.

On the downside, the immediate support can be seen at 1.1222 (25 DMA), below which we may see the pair test 100 DMA support of 1.1209. The next support is seen around 1.1175 levels (channel support).