EUR/USD: Calm before the storm? Euro remains on defense near 1.0500 level awaiting the Fed

The single European currency fell slightly below the 1.05 level in the early hours of Wednesday in a limited trading range as investors struggled to take big bets in anticipation of the crucial Fed meeting later in the day.

The exchange rate remains trapped in an extremely narrow range of almost 50 to 70 basis points near the 1,05 level for the fifth consecutive day, which demonstrates investor skepticism regarding the pair's course.

I have already mentioned this feature from the previous days, describing the pair as quite ''heavy''.

On the one hand, the basic characteristics that have weighed on the European currency lately remain on the table, but on the other hand, the low prices that many investors believe that the European currency is, have created significant confusion.

The exchange rate has been compressed quite a bit lately at current levels, which increases the risks of a sharp decompression that would break through significant levels of either support or resistance.

Yesterday's agenda was quite eventful, but without any major surprises, as the retail sales figures announced in the United States, although they had a positive tone and exceeded estimates, failed to leave any significant impact on the course of the exchange rate.

Fed meeting, Chairman Powell's comments and forecasts for the path of growth, inflation and unemployment are dominating today's agenda and are capturing the interest of investors. Today being quite a stormy day is a very likely scenario.

The US currency appears to have room for further gains and is likely awaiting the Fed meeting and comments from Chairman  Powell for this to happen.

No change in my thoughts, i remain on hold without moving away from the idea of ​​buying the european currency near its recent lows of 1,0330.