EUR/USD is attempting tough to prolong Tuesday’s soar above 1.2150 however in vain, as the bulls continue to be worried in the run-up to the Fed showdown.
The Fed is probably to strike a dovish tone, which may want to in addition weigh down on the greenback. At the time of writing, the foremost foreign money pair trades at 1.2160, nearly unchanged on the day.
From a near-term technical perspective, the spot is hovering in the higher band of the latest buying and selling range, having carved a plausible symmetrical triangle formation on the four-hour chart.
A bullish breakout will be validated solely if the rate takes out the falling trendline (triangle) resistance at 1.2174 on a sustained basis. At that level, the 100-simple transferring common (SMA) coincides.
At the moment, the euro pair is clinging onto the 21-SMA at 1.2157, anticipating a sturdy buying and selling impetus. The upside spoil should name for a take a look at of the 200-SMA at 1.2189, above which the 1.2200 ought to be probed.
Alternatively, the horizontal 50-SMA at 1.2130 would provide preliminary support. Further south, a breach of the rising trendline aid at 1.2119 ought to yield a breakdown, opening flooring toward January lows close to mid-1.2100s.
The Relative Strength Index (RSI) factors greater above the midline, suggesting that there is extra room to the upside.