EUR/USD Daily Price Forecast – EUR/USD Steady Near Mid-1.13 Handle Ahead of FOMC Update

The pair is trading rangebound as both sides are lack strength for a breakout ahead of FOMC update.
Colin First
EURUSD Wednesday
EURUSD Wednesday

The EURUSD pair yesterday saw rangebound price action across the day trapped well within 1.13 handle. Caution ahead of US FOMC update prevented the pair from taking advantage of Brexit headlines inspired volatility to initiate a new rally. The pair scaled new two-week high yesterday on USD’s weakness but saw sharp rebound later in the day as US Dollar recovered strength in American market hours on renewed trade war worries. European macro calendar saw worse than expected outcome in major economic updates released yesterday. These factors led to the pair seeing price action which closely resembled a sine wave in one hour chart.

Brexit Headlines Failed To Create Breakout

Two-day deliberation of FOMC council on latest interest rate decision began yesterday. Investors now await the outcome of the meeting and forward guidance update which will make clear Fed’s stance on rate hike/cut plans for the year ahead. As of writing this article, EURUSD pair is trading flat at 1.1347 down by 0.02% on the day. Ahead of US FOMC update, investors are on the lookout for macro data updates for short term profit opportunities. On the release front, the European calendar will see the release of German PPI data.

On the US economic calendar aside from weekly Crude oil inventory data, Fed interest rate decision update and post update press conference later in the day. Disappointing EURO macro data will give Dollar bulls strength to take the pair back near 1.1300 handle. However, downside breakout is unlikely ahead of US market hours. For now, the pair continues to trade trapped within wider price band limitations which have capped major moves on either side. When looking from a technical perspective, the pair is likely to trade rangebound owing to lack of directional bias ahead of FOMC update. Expected support and resistance for the pair are at 1.1330,1.1300, 1.1290 and 1.1375, 1.1400, 1,1420 handle respectively.

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