EUR/USD trades close to yesterday’s high
Price is back to trading above the 1.1350 handle and is looking to contest the 76.4 retracement level @ 1.1362 but there is also the 100-day MA lurking nearby @ 1.1367. Of note, the near-term bias and momentum continues to side with buyers and that is helping to keep the pair underpinned alongside a weaker dollar to start the day.
However, looking at the bigger picture:
The downwards channel remains intact and sellers are still in control so long as price doesn’t break above the 100-day MA (red line). All eyes will turn towards the FOMC meeting tomorrow to dictate which side will win out.
For buyers, they need to break above the topside channel resistance as well as the 100-day MA. Meanwhile, sellers will need to find a way back below the key hourly moving averages to re-establish a more bearish near-term momentum.
Let’s see what the Fed will have in store for us tomorrow.