This has been a tight FED Week on the forex, with daily ranges being moderate across the majors. Some of the most muted conditions have been evident in the EUR/USD, with trading ranges shrinking as the week has progressed. However, there is a Fibonacci resistance level on the immediate horizon worth being aware of. Let’s dig into the technical outlook and see if a trading opportunity may be in the offing.

Daily Fibonacci Resistance On The Horizon For The EUR/USD

Following the bearish plunge of early last week, the EUR/USD has traded in a sideways “L” formation. This is a strong signal that neither the bulls nor bears are getting the upper hand in the pre-FED action. For the past several sessions, trading conditions have rotated near the 1.1150 area.

Here are the levels to watch for the EUR/USD as we roll into tomorrow’s much-anticipated FOMC Meeting:

• Resistance(1): 38% Current Wave, 1.1169
• Support(1): Swing Low, 1.1101

Bottom Line: The prevailing daily trend in EUR/USD is bearish and intact. Accordingly, joining the action on the short side from the daily 38% Current Wave Fibonacci Retracement isn’t a bad market entry.

As long as the Swing Low (1.1101) remains the current low extreme, I will have sell orders in queue from 1.1164. With an initial stop at 1.1204, this trade produces 30 pips on bearish rotation back to the 1.1130 value area.