EUR/USD bearish theme to stay intact irrespective of FOMC result – FXStreet

FXStreet (Barcelona) - Valeria Bednarik, Chief Analyst at FXStreet, notes that EUR/USD trades in a tight range awaiting the FOMC statement, and while the short-term picture looks neutral, the longer-term bearish trend still stands.

Key Quotes

“The EUR/USD pair hovers around the 1.0600 price zone, limited to a tight range as the market waits for the FED. The short term picture has turned neutral, as the 1 hour chart shows that the price stands around a flat 20 SMA, whilst the technical indicators are holding above their midlines, with a limited upward slope after bouncing from them.”

“In the 4 hours chart the price holds above a flat 20 SMA, currently in the 1.0560 price zone, whilst the indicators hold in positive territory, albeit lacking directional strength.”

“The upcoming moves will be solely depending on FED's announcement, with the levels to watch being 1.0680 to the upside, and 1.0550 to the downside, with a break of either probably signaling a follow through during the upcoming sessions.”

“Nevertheless, the bearish long term dominant trend is too strong to be affected by the US Central Bank decision, and if the EUR gains, the advance will likely be temporal.”

“Support levels: 1.0550 1.0510 1.0470”

“Resistance levels: 1.0650 1.0690 1.0725”