VOT Research Desk
As it pares the greatest daily advance in a fortnight around a six-month high going into Wednesday’s European session, the EUR/USD renews its intraday low under 1.0600.
The Euro does so in preparation for the US Federal Open Market Committee’s (FOMC) monetary policy meeting.
The pair purchasers appear to be challenged, though, by concerns that inflation is still strong and may force the Fed to raise interest rates again.
Technically, the inability of EUR/USD buyers to cross an ascending trend line that has been in place for one month, near 1.0650, combines with overbought RSI (14) conditions to pose a threat to the bulls.
The late Doji candlestick at the multi-day top is another indicator that the upward momentum has likely been tested.
However, the previous resistance line from December 5, which is close to 1.0455, might limit the pair’s immediate decline.
