EUR/USD to find support at 1.1750 and 1.1700 on aa knee-jerk USD bounce post-FOMC – OCBC

The EUR/USD pair is trading flat around 1.1850 on Wednesday ahead of the FOMC. Terence Wu, FX Strategist at OCBC Bank, outlines the levels to watch following the Fed’s Monetary Policy Statement. 

Key quotes

“The EUR/USD pair tested 1.1900 twice on Tuesday and was duly beaten back on both occasions. This reinforces the 1.1800 to 1.1900 range ahead of the FOMC, with potentially better directionality after that.”

“Any bounce in the broad USD post-FOMC should see better supports at 1.1750 and 1.1700. A breach of these levels will signal a deeper downside retracement.”

“On the topside, if the pair can sustain above 1.1900 post-FOMC, the year-to-date high at 1.2011 will be back in focus.”