Euro Retreats Ahead of Critical Fed Decision
The Euro (EUR) remains under pressure against the US Dollar (USD) as markets anticipate Wednesday's Federal Reserve (Fed) monetary policy decision. EUR/USD trades near 1.0859.
Key Factors:
- Fed Focus: Markets await the Fed rate decision and updated projections for key insights into the US interest rate trajectory.
- Global Context: Recent BoJ and RBA decisions and improving US housing data add to market dynamics.
- Technical Outlook: EUR/USD remains neutral to downward biased within a consolidating range. Key moving averages (200, 100, and 50-day) provide dynamic support levels.
Potential Scenarios:
- Bullish Case: A break above 1.0900 could target further gains towards the March 13 high (1.0964) and potentially the year-to-date high (1.0981).
- Bearish Case: A break below the 200-day DMA (1.0838) opens the door to test the 1.0800 level.