EUR/USD Price Analysis: A deeper pullback likely on a breach of 1.2100
|- EUR/USD trades within a narrow range above 1.2100 ahead of the Fed.
- There is a minor support at the Fibo level near 1.2060.
EUR/USD sticks to the rangebound theme for yet another session above the 1.2100 mark on Wednesday.
Further upside has so far met a decent hurdle at the 1.2150 zone, coincident with the 10-day SMA. The resumption of the downtrend remains likely if spot does not clear this area in the near term.
In that case, a break below recent lows in the 1.2100/1.2090 band could pave the way for extra losses in the short-term horizon, with the minor support at 1.2064 (Fibo level). So far, the 50-day SMA just above 1.2100 also reinforces this support zone.
A move above the weekly highs around 1.2220 should expose monthly peaks near 1.2270 (May 25). Above this region, the pair should resume the upside bias and target the 1.2300 yardstick.
On the broader view, the constructive stance on EUR/USD is forecast to remain intact as long as it trades above the 200-day SMA, today at 1.1991.
EUR/USD daily chart
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