EUR/USD will lack conviction in front of the FOMC meeting tomorrow [Video]

EUR/USD

The signs are that EUR/USD will lack conviction in front of the FOMC meeting tomorrow (if not, in front of the tariffs decision). The sellers had an opportunity to take control after Friday’s bearish engulfing candle, but the consolidation that has followed suggests a market lacking conviction. Another early consolidation back towards the old $1.1075/$1.1100 mid-range pivot today reflects this. Momentum indicators are neutral (RSI flat almost bang on 50, MACD lines flat at zero) to very slightly corrective (Stochastics falling). However, there is nothing to suggest any conviction has built in the wake of Friday’s strong negative candle. It is a wait and see market once more. Initial support is at $1.1040 which protects the growing medium term floor at $1.0980/$1.1000. We still see the pivot band $1.1075/$1.1100 as a near term neutral zone.