- EUR/USD shown a minor recovery from the low of 1.11664. The pair awaits US Fed monetary policy meeting which concludes on Wednesday for further direction. It is currently trading around 1.11922.
- Fed is expected to raise its federal funds target to between 1% and 1.25% from 0.75% and 1% after the conclusion of two day meeting on Wednesday. Investors will pay close attention to the press conference for the clues of reduction in $4.5 trillion balance sheet.
- Euro upside capped by 200- HMA at 1.1235 and any minor bullishness can be seen above that level. Any break above that level will take the pair till 1.12850/1.1300. The pair should break above 1.1300 for further bullish continuation.
- On the lower side, near term support is around 1.11500-1.1160 (trend line support and 21- EMA) and any break below will drag the pair down till 1.1100 (May 30th 2017 low)/1.10750 (May 18th 2017 low).
It is good to sell on rallies around 1.1200-1.1205 with SL around 1.1250 for the TP of 1.1100/1.0750.
