FXStreet (Edinburgh) – EUR/USD remains in a consolidative pattern around 1.1040/50 on Wednesday ahead of the FOMC meeting due in the European evening.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted the pair “is seeing a minor bounce from its 1.0968/65 7 month 2015 support line, we look for rebounds to remain tepid. Rallies are indicated to be likely to hold in the 1.1080/1.1140 vicinity and as far as we are concerned it is only a matter of time before we see the next leg lower and look for losses to 1.0808 and 1.0457, the March low”.
Furthermore, strategists at Westpac added “Having rejected 1.15 and broken below trend support back to June, EUR looks set to head back towards 1.08 with short term momentum signals suggesting we should see euro lower”.
(Market News Provided by FXstreet)