EURUSD bulls are unable to push price above the resistance of 1.1230-1.1260 and bears remain in control of the trend pushing prices below 1.12. At current market conditions I prefer to be neutral. With FOMC tomorrow it is better to stay on the sidelines and wait for the dust to settle.
Red lines - wedge pattern
Green rectangle - support (broken)
EURUSD is trading below the green rectangle support area and inside the downward sloping wedge pattern. Price is also at the 61.8% Fibonacci retracement of the 1.1107-1.1347 move, so we are currently at an important junction. Depending on what happens tomorrow at the FOMC we could see a reversal to the upside and a new upward move or a continuation of the downtrend to break 1.11. Technically short-term trend is bearish. As long as price remains below the green rectangle and inside the wedge pattern bears will remain in control of the trend.
