EUR/USD: lower dollar/rate, eyes next on Central Bank's remarks for Wed's trade

Currently, EUR/USD is trading at 1.1746, up 0.12% on the day, having posted a daily high at 1.1774 and low at 1.1696.

EUR/JPY: where next, because cross is still above six-month uptrend?

EUR/USD is closing the NY session on a pullback from the aforementioned highs scored in late London business in an extension of the move that started in early London on broad dollar weakness while DE-US spreads tighten. However, cross flows in the yen and offers in EUR/JPY pulled the euro down across the board and EUR/USD slid to just above 1.1740 later in the day.

The main driver of a lower dollar today were the comments from Powell who pulled even with Warsh in betting markets for next the Fed chairperson, seen as possibly more ideologically aligned to Trump admin fiscal plans and was advocating for easy rates and reducing bank regulations. This equated to lower US yields. 

Spanish King Felipe VI: Catalan authorities have disparaged democratic values

Madrid and Catalonia, what's next? - Deutsche Bank

In respect to the data events, there was not a great deal to go on that had any lasting effect, (the EZ August PPI arrived up in the month by 0.3% and by 2.5% when compared to a year earlier. In the US, the NY ISM Business Conditions Index fell back into a contraction for September, down to 49.7 from August 56.6.).

Instead, markets wait to hear from the heads of both the Fed and ECB tomorrow.  Draghi will make opening remarks at the inauguration of the ECB visitors centre in Frankfurt and Yellen at a banking conference in St. Louis. 

Strong ISM but partly due to hurricanes - Danske Bank

EUR/USD levels

Valeria Bednarik, chief analyst at FXStreet explained that in the 4 hours chart, an early attempt to recover ground was contained by selling interest around a flat 20 SMA, currently around 1.1770, while technical indicators remain within a bearish territory, with limited downward strength amid the restricted intraday action seen this Tuesday. 

"The key support, in the case of further slides comes at 1.1660, August monthly low, with a break below the level opening doors for an extension towards 1.1460 the level that contained rallies for most of 2015 and 2016. The bearish pressure may ease on a recovery above the 1.1820/30 region, but a stronger advance is still out of sight," Valeria added.