Forex: EUR/USD tests 1.3200

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Forex: EUR/USD tests 1.3200

FITITOL--> FXstreet.com (Barcelona) - As the American session progresses, the EUR/USD is losing steam after a 30-pip rise during the NY opening. Currently, the pair is threatening to lose the 1.3200 handle as it going back and forth around the psychological level.

At 16:30 GMT, the Fed will publish its interest rate decision and the press conference is scheduled at 18:15 GMT. Nick Bennenbroek, head of currency strategy at Wells Fargo Bank believes the outcome of the FOMC should mark the rest of the week’s trading. “We view the event risk surrounding the Fed announcement as relatively balanced, with hints of further Fed easing or a signal of earlier Fed tightening both seen as possible, albeit quite unlikely, outcomes”, he added.

“In the 4 hours chart indicators are showing some bearish divergences, while price stands above both 20 SMA and 200 EMA, suggesting the upside is favored as long as above 1.3180 immediate support”, wrote FXstreet.com analyst Valeria Bednarik.