FX.co ★ EUR/USD

The EUR/USD has demonstrated resilience, rebounding from Monday's brief retreat against the US Dollar (USD). This resurgence has propelled the EUR/USD pair to regain stability, breaching the critical 1.0481 threshold on Tuesday. Concurrently, the Greenback finds itself uncertain, hovering near the 107.00 mark, as indicated by the USD Index (DXY). As market participants tread cautiously, all eyes are on the pivotal Federal Open Market Committee (FOMC) meeting slated for the North American session. Fundamentals of the EUR/USD: The upcoming FOMC meeting holds significant weight, with market players eagerly awaiting the monetary policy statement and Fed Chair Jerome Powell's insights during the post-meeting press conference. These deliberations will be scrutinized meticulously, as they can offer fresh insights into the trajectory of future rate hikes. Consequently, this event will be instrumental in shaping the US Dollar (USD) price dynamics, charting a new course for the EUR/USD pair. Leading up to this pivotal central bank event, USD bulls appear reticent to place assertive bets. This hesitancy, in turn, acts as a headwind for the Greenback, influencing its positioning in the forex market. The European Central Bank's (ECB) dovish rate decision from the previous week casts a shadow over the EUR/USD pair, further complicating the USD's stance. H4 Time Frame Technical Outlook: A minor resistance level looms at the September 12 high of 1.0768 on the technical front, presenting an initial obstacle. Beyond this lies the more substantial 200-day Simple Moving Average (SMA) at 1.0829, a pivotal juncture. A breach of this level could pave the way for a recovery towards the interim 55-day SMA at 1.0915, followed by the August 30 zenith of 1.0944.

Surpassing the latter could reignite interest in the psychological barrier of 1.1000, followed closely by the peak of August 10 at 1.1066. Scaling higher, the pair may set its sights on retesting the July 27 high at 1.1149 before eyeing the 2023 pinnacle at 1.1277, observed on July 18. However, it's imperative to note that as long as the EUR/USD remains below the 200-day SMA, downward pressure may persist.