EUR/USD sideways ahead of FOMC
EUR/USD continues to trade sideways below the $1.3400 mark. On Tuesday euro is testing the weekly support line, but holds above the $1.3300 barrier. Traders keep counting down the hours ahead of the Federal Reserve meeting on Wednesday. Any hints on improvement in the US economy and tapering of QE would pull the pair down. Generally, the US dollar is expected to strengthen ahead of the meeting, but beware of the false breaks: pre-FOMC market can be highly volatile.
Drop below the $1.3275 support would confirm the short-term top at $1.3390 and open the way to $1.3175. A break above $1.3410 is needed to clear the way for further growth. Next resistance will be seen at $1.3450 and $1.3500.
Watch EZ and German ZEW economic indices at 09:00 GMT and the US statistics at 12:30 GMT.
Chart. H4 EUR/USD