EUR/USD Price Analysis: Doji at multi-day top, overbought RSI probe buyers ahead of FOMC

EUR/USD remains mildly bid near the six-month high ahead of the Fed meeting.
Bearish candlestick, overbought RSI challenge further upside near the monthly resistance line.
100-SMA restricts immediate downside ahead of three-week-old ascending support line.
US inflation cut hawkish Fed bets, favored EUR/USD bulls but FOMC is the key to near-term directions.

Anil Panchal FXStreet

EUR/USD picks up bids to reverse the early Asian session pullback from a six-month high, mildly bid near 1.0640 by the press time. Even so, the major currency pair remains inactive during early Wednesday as traders await the key Federal Open Market Committee (FOMC) announcements.

Also read: EUR/USD floats above 1.0600 ahead of Federal Reserve monetary policy meeting

That said, the quote rallied to the highest levels since June the previous day before retreating from 1.0673.

The pullback moves could be linked to the EUR/USD buyer’s inability to cross a one-month-old ascending trend line as the RSI (14) line pokes the overbought territory. Also likely to have challenged the upside momentum is the late Doji candlestick at the multi-day top.

As a result, the pair’s pullback towards 1.0600 round figure appears imminent.

However, the EUR/USD bears are likely to remain off the table unless witnessing a clear downside break of the 100-SMA level surrounding 1.0455.

Following that, an ascending support line from November 21, close to 1.0380 at the latest, will act as the last defense of the EUR/USD bulls.

On the contrary, an upside break of the aforementioned resistance line from mid-November, near 1.0650 as we write, could challenge the EUR/USD pair’s immediate recovery before directing the bulls towards the latest swing high around 1.0675.

In a case where the pair remains firmer past 1.0675, the 1.0700 threshold and highs marked in June around 1.0775 will be in focus.

EUR/USD: Four-hour chart

Trend: Pullback expected

Additional important levels

Overview
Today last price	1.0634
Today Daily Change	0.0007
Today Daily Change %	0.07%
Today daily open	1.0627

Trends
Daily SMA20	1.0435
Daily SMA50	1.0126
Daily SMA100	1.0073
Daily SMA200	1.035

Levels
Previous Daily High	1.0674
Previous Daily Low	1.0528
Previous Weekly High	1.0595
Previous Weekly Low	1.0443
Previous Monthly High	1.0497
Previous Monthly Low	0.973
Daily Fibonacci 38.2%	1.0618
Daily Fibonacci 61.8%	1.0584
Daily Pivot Point S1	1.0546
Daily Pivot Point S2	1.0464
Daily Pivot Point S3	1.04
Daily Pivot Point R1	1.0691
Daily Pivot Point R2	1.0755
Daily Pivot Point R3	1.0836

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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