EUR/USD continues to fluctuate in a relatively tight range below 1.1300 on Wednesday as investors remain on the sidelines ahead of the US Federal Reserve's crucial policy decisions. The data from the US revealed that Retail Sales slowed down to 0.3% in November, falling short of the market expectation of a 0.8% increase.
The EUR/USD pair showed no reaction to US mixed figures, trading in the 1.1260 price zone, with the near term risk skewed to the downside. The 4-hour chart shows that the pair is resting on the base of a wedge while consolidating below its 20 and 100 SMAs, both directionless. Technical indicators also lack directional strength, holding within negative levels. The year low at 1.1185 is a critical support level that the pair could break with the US Federal Reserve's announcement, which may result in an approach to the 1.1100 figure.
Support levels: 1.1230 1.1185 1.1130
Resistance levels: 1.1305 1.1345 1.1380
