The pair EUR/USD declined below the threshold of 1.20 this afternoon, but it is mostly wait and see which dominates before the FOMC meeting.
After a break upward above the 1.2000 this night, EUR/USD has advanced above the threshold this morning, but without finding support to go much higher.
In effect, the approach of the FOMC meeting pushes investors cautious, and this has created a consolidation phase.
This afternoon, with the threshold of 1.2000 finished by letting go, giving way to a correction that could continue in the direction of 1.1980 in intraday.
There are no new special behind this move, but the break technique and the failure to push above 1.20 fuelling the downturn.
A break below 1.1980 could then strengthen the movement towards the 1.1950 and eventually to the 1.1920/00 to an acceleration to the downside.
The consolidation should, however, remain the major theme in waiting for the FOMC meeting this evening, which might bring volatility on the Forex.
A return to the recent peaks in the area of 1.2090/1.2100 may require as a result dovish tone of the FOMC tonight, so it will probably take a Fed’s hawkish tone to encourage a return in direction of the support zone of 1.1850/25.
This afternoon, at 16h we will follow on with the economic calendar existing home sales, but this statistic is not expected to have much impact on the Forex.
In fact, it is generally a minor release, and today we have this wait-and-see prior to the FOMC, which would make the reaction to the Forex market even more rigid.
The pair EUR/USD is currently trading at 1.1992 on the Forex.
Chart EUR/USD H1
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This chart has been realized with the trading platform TradingStation 2 provided by FXCM France.