The EUR/USD pair trades uneventfully within its latest range, now retreating from a daily high of 1.0882, achieved late in the Asian session, as oil struggle to hold above $30.00 a barrel this Wednesday. Markets are generally optimistic ahead of the US FED economic policy decision, as the US Central Bank is largely expected to remain on-hold and offer a dovish statement afterwards.
View the Live chart of the EUR/USD
The pair however, has managed to advance an hold above 1.0845, the 38.2% retracement of the December rally and the immediate support, although the technical indicators lack directional strength, while the price is now mid-way between its 20 and 200 SMAs. Is unlikely the FOMC can move the pair away from its recent range, and more unlikely it can surprise negatively, given that the market is already pricing a dovish tone. But in the case of some dollar weakness, the pair can rally up to 1.0925 first, and 1.0970 then, where selling interest waits.
Should they deliver a dollar positive surprise, the pair needs to break below the mentioned Fibonacci support, to retest the lows of its recent range in the 1.0770/1.0800 price zone.
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