The pair trades in a 15 pips range so far today
Price action remains subdued for the most part as traders are counting down to the FOMC meeting decision tomorrow before committing to any firm moves.
Of note, the pair did break above the near-term trendline resistance in overnight trading and buyers have been leaning on that level for support so far today. However, price is still struggling to keep above 1.1150 and is constantly pivoting around the 100-hour MA (red line) @ 1.1137 – hinting at indecision among traders.
And you can’t really blame them. It’s all about the anticipation to the Fed now but before that we’ll get euro area inflation data for July and Q2 flash GDP data tomorrow.
The latter two may have a minor impact on price action but any major directional break will only arise after the Fed. As such, expect more tepid trading in the sessions ahead before we learn of the Fed’s communication tomorrow.
Near-term support is still seen closer to the 1.1100 handle with further resistance is seen closer to the 200-hour MA (blue line) @ 1.1173 if price moves above 1.1150.