After an unexpected decline on Monday, on Tuesday, buyers were able to restore all previously lost positions.
The main factor of uncertainty remains the FOMC meeting. According to CME Group polls, 56.5% of experts expect the Fed to cut rates by 25 bp. Other analysts believe that the regulator will not make adjustments to the main parameters of monetary policy. Also at the current meeting, the Fed will publish new forecasts on key macroeconomic indicators and interest rate changes.
A softening of monetary policy in the United States will lead to a reduction in the differential in interest rates between the Fed and the ECB, which could become a strong driver for the growth of the EUR / USD quotes. If the Fed decides to keep interest rates unchanged and adheres to the restrained rhetoric of the US dollar, it is likely to maintain a dominant position in the foreign exchange market.
On the chart, trading is still held in the horizontal range 1.0990-1.1085. To determine the further direction of the price movement, it is worth waiting for the breakdown of one of the borders of the price channel.
Resistance levels: 1.1085, 1.1155, 1.1225.
Support levels: 1.0990, 1.0925, 1.0890.
The main scenario is a support retest at 1.0990 and an increase to 1.1155.
An alternative scenario is a sideways in the range 1.0990-1.1085.
There is great uncertainty in the market. There are no trading signals on the chart. Today we recommend staying out of the market.