The EUR/USD pair has found a bit of a base during the day on Wednesday in early trading, but we are awaiting the Federal Reserve announcement, so I think a lot of this will come down to the tone of the statement more than anything else, so I would anticipate bullish pressure, but the downward trend line will more than likely keep a bit of downward pressure in this market. As you can see, the 1.1750 level above is marked, so if we can clear that level, the market will probably go to the 1.1850 level. Alternately, we could go down to the bottom of the symmetrical triangle, and then break down below the 1.16 level, which should send this market down to the 1.15 handle.
Market participants continue to be very cautious, and I think that’s going to be the case for the next couple of days because not only do we have the Federal Reserve coming out with a statement on Wednesday, we have the jobs number coming out on Friday. Ultimately, this is a market that is going to be very volatile over the next couple of days. Until we break out of that triangle though, I assume that it’s probably best to play a range bound market more than anything else.