Majors have shown little developments during the Asian session, waiting in cautious mode for the upcoming FOMC decision later on this afternoon. The US Central Bank is expected to maintain its rates on hold this month, and no press conference is scheduled for after the decision. But the market is expecting a generally hawkish tone in where to find clues on the upcoming rate hike anticipated early this year.
September seems to be the date and a change in the wording, welcoming the latest economic progress, will be a way to convince the markets the FED will move in its next meeting. A dovish tone, and no change in the wording, will signal the FED may want to wait further, stretching the date of the lift-off towards December and therefore weigh on the greenback
View live chart of the EUR/USD
The EUR/USD pair has been trading in a limited range around the 1.1050 level, now bouncing from a daily low set at 1.1029. The 4 hours chart shows that the price is holding above a bullish 20 SMA, whilst the RSI indicator has resumed its advance above the 50 level, albeit the Momentum indicator has lost its upward strength and turned lower above 100. The critical resistance level for the upcoming hours will be the 1.1120 price zone, this week high and a strong static resistance level, as it will take a break above to confirm additional advances towards 1.1160 and 1.1200.
Below 1.1020 on a strong dollar on the other hand, should see the pair accelerating south, eyeing the 1.0950 region as the probable bearish target.
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