EUR/USD Price Analysis: Pair hovers near 1.0500, lacking momentum ahead of Fed decision
- EUR/USD edges slightly higher on Wednesday, settling around 1.0500 but still capped by the 20-day SMA.
- RSI holds at 42 in negative territory, signaling persistent caution and subdued buying interest.
The EUR/USD pair remains in a holding pattern on Wednesday, hovering near the 1.0500 mark. Despite recent attempts to gain traction, the 20-day Simple Moving Average (SMA) near 1.0550 continues to act as a formidable barrier, preventing the pair from establishing a more constructive bias. Market participants are now looking to the upcoming Federal Reserve (Fed) decision for fresh directional cues.
Technical indicators reflect a calm environment. The Relative Strength Index (RSI) is flat at 42, firmly in negative territory and suggesting limited buying interest. Meanwhile, the Moving Average Convergence Divergence (MACD) histogram shows flat green bars, underscoring the pair’s lack of decisive momentum.
In the near term, a clear break above the 20-day SMA would be required to shift the short-term outlook in favor of the bulls. Until then, the bias remains tilted to the downside, with the 1.0500 handle and the 1.0480 support area in focus. The upcoming Fed decision could provide the necessary catalyst for a breakout or further consolidation, shaping the pair’s short-term trajectory.
EUR/USD daily chart
Author
Patricio Martín
FXStreet
Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.
