EUR/USD traders in wait and see mode before FOMC - FXStreet

Valeria Bednarik, chief analyst at FXStreet explained that EUR/USD was trading below a bearish 20 SMA in the 4 hours chart, which stands around the 1.1000 level, providing an immediate dynamic resistance.

Key Quotes:

"In the same chart, the price is far below the 100 and 200 SMAs, indicating that the bearish trend remains in place, but the technical indicators have turned modestly higher within negative territory, far from suggesting the pair may extend its recovery further.

Overall, the market is in wait-and-see mode ahead of the FED's economic policy meeting this Wednesday. The US Central Bank is expected to remain on-hold, but also to provide a more hawkish tone, amid recent upbeat data. In the meantime, the pair remains at risk of extending its decline towards the 1.0800/40 region, with spikes up to 1.1050 probably being seen as selling opportunities."