FxWirePro- EUR/USD Trade Idea

EUR/USD trades flat ahead of Fed monetary policy. It hits an intraday low of 1.03819 and currently trading around 1.04161.

Interest rates are expected to be maintained at 4.25% and 4.50% by the Federal Reserve with carefulness based on the continued inflationary concerns. From here, cuts in rates will also come in gradually because that will depend upon how the economy performs.

Technical Analysis of EUR/USD

The pair is holding below short and long-term moving averages in the 4-hour chart. Near-term resistance is seen at 1.0465; a break above this may push the pair to targets of 1.0500/1.0535/1.0575, and 1.0600/1.0660. Major bullish momentum is likely only if prices can break above 1.0660, where levels of 1.0700, 1.0760, and 1.0800 await. On the downside, support is seen at 1.0400 any violation below will drag the pair to  1.0360/1.0300/1.0220.

Market Indicators and Trading Strategy

Commodity Channel Index (CCI)- Neutral

Average Directional Movement Index (ADX) - neutral.  It is good to sell on rallies around 1.0480, with a stop-loss at 1.0535 for a target price of 1.0300.