EURUSD approaches critical levels as traders anticipate the FOMC rate decision. The resistance is at 1.0954, while support rests at 1.0817, influencing future price direction.
Analysis of the 4-hour chart shows sellers have pressed against the 1.0936 – 1.0954 resistance zone, limiting upward movement. A breakthrough above this area may indicate a stronger bullish trend.
Conversely, the 61.8% retracement level at 1.0817 has provided support. A decline beneath this point could suggest a downward shift, targeting support between 1.0760 and 1.0776, with further focus on the 200-day and 100-hour moving averages at 1.0727.
Currently, the pair trades around 1.0884, caught between resistance and support. A decisive movement beyond these levels will dictate the next trend.
These levels show traders where buying and selling pressures build up. The upper limit around 1.0954 has held firm, stopping price advances, while the lower level near 1.0817 has caught declines. These barriers create a narrow space where price is struggling for a clear direction. This uncertainty means momentum could escalate once one of these boundaries is crossed decisively.
The repeated rejection from the resistance zone suggests sellers are actively defending that level. This has kept upward movement in check, reducing bullish momentum. If price does push through, the move would likely bring in further buying, propelling price towards higher resistance zones. The strength of such a move would determine whether a broader rally follows.
Below, the 1.0817 level aligns with a key Fibonacci retracement, reinforcing its importance. Buyers have responded here before, leading to modest rebounds. Should sellers manage to break beneath this threshold, a more extended decline could gain traction, opening the way to the next area around 1.0760. At that point, attention would turn to long-term moving averages, which frequently attract interest from traders assessing trend direction.
With price hovering near the middle of support and resistance, patience is required. A false breakout in either direction could trigger sharp reversals. Waiting for confirmation before acting would help avoid getting caught in short-lived moves. Until one side clearly asserts control, short-term positioning remains uncertain.
