FXStreet (Guatemala) – Valeria Bednarik, chief analyst at FXStreet explained the technical conditions surrounding EUR/USD.
Key Quotes:
The EUR/USD pair presents a neutral technical tone ahead of the FOMC’s economic policy decision this Wednesday. The US Central Bank is largely expected to remain on-hold after raising rates for the first time in almost a decade last December.
As for the technical picture, the 4 hours char shows that the price briefly fell below its 20 SMA, but is now holding above it, while the technical indicators head nowhere around their mid-lines, reflecting the ongoing market’s uncertainty over the pair.
Trading near the base of its latest range, the key is at the 1.0770/1.0800 region, where the pair met buying interest even since the year started, and even has the 50% retracement of the December rally.
A break below the level should open doors for a steady decline towards the 1.0715 region, the 61.8% retracement of the same rally.”
(Market News Provided by FXstreet)