EUR/USD & Fed interest rate decision: be aware of the bearish trendline channel
Today at 18:00 GMT we'll know the Fed's interest rate decision after the two-day meeting, where the analysts are expecting a hawkish tone on monetary policy's statement. However, we cannot see strong action on US Dollar, which also has been rallying since several days ago, and the markets are waiting for further actions following Brexit's outcome, but that could be delayed, as the BoE didn't take major actions on their latest monetary policy meeting.
The technical scenario for EUR/USD at H4 chart is very interesting, ahead of FOMC meeting. There is a bearish trend line channel formation and the pair is following it. The support level of 1.0957 remains there and a very hawkish statement by Fed could trigger bullish's actions on US dollar and with that being said, EUR/USD can break lower to test the 1.0850 level. By the other hand, if the pair achieves in break the upside bearish trend line (dovish's statement), then it can reach the 1.1107 level.