FxWirePro: EUR/USD neutral in the near-term, scope for downward resumption
The EUR/USD pair declined in the US session on Tuesday as investors cashed in on euro earlier gains ahead of Federal Reserve meeting that is expected to raise the U.S. benchmark interest rate and signal the pace of furth…
The EUR/USD pair declined in the US session on Tuesday as investors cashed in on euro earlier gains ahead of Federal Reserve meeting that is expected to raise the U.S. benchmark interest rate and signal the pace of further hikes in 2017.
The Fed, the U.S. central bank, is widely expected to raise its benchmark interest rate on Wednesday and may also provide details on its plans to shrink $4.5 trillion of assets it amassed to nurse the economic recovery.
The Fed is scheduled to release its decision at 2 p.m ET (1800 GMT) on Wednesday at the conclusion of its two-day policy meeting. Fed Chair Janet Yellen is due to hold a press conference a half hour later.
Further upside for this pair is expected to be limited as strong resistance level at 1.1231 is set to limit upside and bring decline towards lower levels I the short term.
To the upside, the immediate resistance can be seen at 1.1204, a break above this level would expose the pair to next resistance level at 1.1231.
To the downside, immediate support can be seen at 1.1177, a break below at this level will open the door towards next level at 1.1164.
