The Single currency trades lower as the greenback strengthens before today's FOMC meeting. Market participants pumped some strength into the U.S Dollar as they raise their bets on a hawkish statement from the Fed. Yesterday's U.S economic numbers also played a large part in increasing demand for the greenback. The PCE Deflator figure printed lower than expected but remained slightly above 2% which is the Fed's long term target and the U.S Consumer Confidence figure printed better than expected. Even with the wide range of economic releases from both the EU and the U.S, we expect the market to remain stagnant for the day until the FOMC statement.
The Euro rejects the 1.1745 resistance level for the fourth time in a row. This is a clear indication of weakness from Euro bulls and strengthen from Euro bears. Adding to the bearish sentiment, the pair broke down below the 200-period moving average signaling a shift back towards a downtrend. Combined with fundamentals, technicals signal a drop towards the 1.16480 support level.
Support: 1.16681 1.16480
Resistance: 1.17517 1.17914