EUR/USD Price Analysis: Euro clings to session’s highs ahead of Fed

  

 

 

The shared currency, on the daily chart, is trading in a downtrend below the 200-day simple moving average (DMA). However, at the start of December, the market had a strong bullish reversal. The market has been in a tight correction since then. Earlier in the New York session, the Consumer Price Index ex Food & Energy (YoY) came in line with expectations at 2.3% in November. However, investors are waiting for the FOMC at 19:00 GMT and the press conference at 19:30 GMT. 

 

 

EUR/USD is challenging the 1.1100 resistance while trading above the main SMAs on the four-hour chart. EUR/USD stays choppy ahead of the FOMC as the market remains confined in a tight range. Buyers would need a daily close above the 1.1100/1.1119 resistance zone to generate more buying pressure, according to the Technical Confluences Indicator. 

 

 

 

The euro is trading above its main SMAs. However, the market has been ranging for almost two weeks. Sellers would gain momentum on a daily close below the 1.1062 support. A breakout below this level could see the 1.1027, 1.1004 and 1.0987 levels revisited, according to the Technical Confluences Indicator.