To open long positions on EURUSD, you need:

The euro fell in the first half of the day after yesterday's sharp growth, which could be seen during the North American session. In my morning forecast, I drew attention to the data on inflation in the eurozone, which led to a small downward correction of EUR/USD, as it completely coincided with the forecasts of economists. From a technical point of view, nothing much has changed. Buyers will also try to break above the resistance of 1.1074, which will lead to the continuation of yesterday's growth of the euro in the maximum area of 1.1110, as well as to update a larger resistance level of 1.1151, where I recommend taking the profits. However, the market will focus on the Fed report, so it is best to consider purchases after lowering and updating the support of 1.1031 or a rebound from a larger low near 1.0992.

To open short positions on EURUSD, you need:

Sellers will wait for lower interest rates and a corresponding market reaction. And only if during a press conference Jerome Powell declares that no further cuts in interest rates are planned this year, the bears will begin to open short positions in the euro. The formation of a false breakdown in the resistance area of 1.1074 will lead to a downward correction of EUR/USD to the support area of 1.1031, but a further target of sellers will be at least 1.0992, where I recommend fixing the profits. In the scenario of growth of the pair above the resistance of 1.1074 after the Fed's decision, short positions can be looked at on the test of last week's high of 1.1110 or sold immediately on a rebound from the new resistance of 1.1151.

Signals:

Moving Averages

Trading is conducted in the area of 30 and 50 moving averages, which indicates no market uncertainty again.

Bollinger Bands

In the case of an upward correction before the Fed's decision, the upper limit of the indicator around 1.1080 will act as resistance.

Description of indicators

• MA (moving average) 50 days – yellow
• MA (moving average) 30 days – green
• MACD: fast EMA 12, slow EMA 26, SMA 9
• Bollinger Bands 20