FxWirePro: EUR/USD neutral in the near term, scope for downward resumption

• The EUR/USD dipped on Wednesday as dollar edged higher as investors trimmed some short bets before a Federal Reserve policy decision.
   
• The Fed is widely expected to hold interest rates unchanged, with expectations of another rate hike before the end of the year at less than 50 percent.
   
• The central bank might, however, hint that it will start winding down its massive holdings of bonds as early as September, a move that should push up dollar.
   
• Further upside in this pair is expected to be limited as the pair finds strong resistance at 1.1756 which should limit further upside and bring decline towards lower levels in the short term.
   
• To the upside, immediate resistance can be seen at 1.1681, a break above this level would take the pair towards next resistance level at 1.1711.
   
• To the downside, strong support can be seen at 1.1621 levels, a break below this level will open the door towards next level at 1.1560.
  
  Resistance Levels
  
  R1: 1.1681 (38.2% Retracement level)
  
  R2: 1.1711 (July 26th high)
  
  R3: 1.1756 (23.6% Retracement level)
  
  Support Levels
  
  S1: 1.1621 (50% Retracement level)
  
  S2: 1.1560 (61.8% Retracement level)
  
  S3: 1.1500 (Psychological levels)

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