EUR/USD Holds Neutral Tone Ahead of Fed DecisionIn recent hours, the pair has shown limited movement of just 0.5%, reflecting a neutral bias as the market prepares for the upcoming Federal Reserve policy announcement. At this point, expectations suggest that the U.S. central bank will maintain a neutral stance, keeping the interest rate steady at 4.5% in the short term.
However, the key focus will be on the Fed’s accompanying statement, where the greatest uncertainty lies. If the tone remains hawkish, it's likely that demand for the U.S. dollar will strengthen, potentially adding downward pressure to EUR/USD.
Uptrend Remains Intact
Since early March, the pair has maintained a steady bullish trend, without any major corrections that would threaten the current structure. That said, the price has once again approached key resistance zones, but has yet to break through them in a sustained manner—opening the door for range-bound movement if this pattern continues.
Technical Indicators
RSI: The Relative Strength Index has begun to show lower highs, while EUR/USD continues to print higher highs. This bearish divergence indicates an imbalance in market forces, potentially signaling room for a short-term correction.
MACD: The MACD histogram is fluctuating near the zero line, reflecting a technically neutral environment. As long as this behavior continues, the pair may enter a consolidation phase, awaiting a clearer directional signal.
Key Levels to Watch:
1.15443 – Current Resistance: Marks the multi-month high. A sustained move above this level could revive the bullish momentum.
1.13177 – Intermediate Support: Aligns with a recent neutral zone and the 50-period moving average. It acts as a technical support in the event of short-term pullbacks.
1.10428 – Key Support: Represents the lowest level of recent months. A break below this area could trigger a stronger bearish bias, putting the current uptrend at risk.
Written by Julian Pineda, CFA – Market Analyst
Follow him at: @julianpineda25
