EUR/USD showed high volatility on Tuesday. It was dominated by bulls during the first part of the day, but nevertheless failed to overcome the psychological 1.18 mark. As a result, it retraced from the breached two-week channel up and allowed bears to dominate the remainder of the session until the 200-hour SMA was reached at 1.1740.
Technical indicators are tended south today; however, given that this 1.1740 area is likewise restricted by the 55-period (4H) SMA, the Euro might lack the necessary bearish momentum to dash through this support during the first part of the day. This could send the pair higher within the following hours.
By and large, the Fed policy statement at 1800GMT is likely to introduce volatility; thus, today’s trading range should be wide, possibly 1.1700/1.1820.
