The pair is consolidating in a narrow range below the resistance level of 1.1345 in anticipation of the outcome of the Fed's monetary policy meeting, which will conclude on Wednesday, May 7. If the Fed decides to leave the key interest rate unchanged, as currently expected, and expresses doubt about the possibility of a rate cut in June, the pair may come under pressure and decline.
From a technical standpoint, the pair is consolidating within a sideways range of 1.1260–1.1410. A breakout to the downside could lead to a significant decline in the pair.
Technical picture and trading idea:
The price is on the middle line of the Bollinger Bands, above the 5-day and 14-day SMAs. RSI is below the 50% level and shows a local downward reversal. Stochastic is also below this level, but its crossover indicates a possible upward rebound.
I believe the pair may fall first to 1.1260 and then to 1.1185. The entry point can be considered at the 1.1308 level.
