Euro Continues to Trade Cautiously Ahead of Fed Announcement

Posted Wednesday, March 22, 2023 by
Arslan Butt • 1 min read

EUR/USD is trading in a tight range around 1.0770-80 as investors anxiously await the Fed decision on interest rates. European Central Bank President Christine Lagarde’s speech and an ascending triangle formation established since March 1 are contributing to the cautious market sentiment. The pair’s successful rebound from the 100-day moving average, along with bullish MACD signals and a positive RSI (14) line, are keeping buyers optimistic.

However, the 1.0700-1.0800 range is currently limiting the EUR/USD ‘s movements. The late January low and February 14 swing high are adding strength to the 1.0800 hurdle, making it challenging for buyers to push the pair higher. If the 1.0700 support is broken, the next level of support is the 100-DMA at 1.0595. After that, the 61.8% Fibonacci retracement level of the pair’s run-up between late November and early February, around 1.0530, may test the bears.

If the pair successfully breaks the 1.0800 resistance level, the next target would be January’s high of nearly 1.0930, followed by the year-to-date high marked in February around 1.1035.

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