EURUSD hushed before FOMC
Tatiana Norkina, FBS analyst
EURUSD keeps consolidating in a narrow price range of 1.1020-1.1060, after the past week's collapse. The oversoldness is obvious to prevents bears from increasing pressure, although the four-hour technical picture is fully consistent with the bearish sentiment of the market participants. Indeed, the intensifying dead cross and the down expanding Ichimoku cloud are indicating the long-term sellers presence. More than that, Chinkou Span is gradually exiting the zone of oversoldness.
Today, traders are expecting the FOMC statement on interest rates. It is possible that taking advantage of the increased volatility, the bulls will even try to correct the rate deep into the channel. In any case, trading will be quite risky today.
Technical levels: support – 1.1000; resistance – 1.1060, 1.1090, 1.1150.
Trade recommendations: off the market.