EURUSD (1.2262):The euro currency gave up the gains from Tuesday. A modestly stronger U.S. dollar and some weak data from the Eurozone added to the declines. The German ZEW economic sentiment fell to an 18-month low for March. However, current conditions index was seen to have remained broadly stable. From a technical perspective, expect to see some volatility in the EURUSD today heading to the Fed meeting. Following the reversal near the resistance zone of 1.2363 – 1.2333 level, we expect the common currency to maintain the range, touching down to the lower support at 1.2179. A close below 1.2179 will expose the euro toward the next lower support at 1.2090 – 1.2070 level.
