EUR/USD is at a brink of a bearish breakout

The EUR/USD pair trades around the 1.1900 level as meets near-term buyers around the 1.1885 Fibonacci support level, hanging by a thread ahead of Fed’s decision, Valeria Bednarik, Chief Analyst at FXStreet, reports. 

See – Federal Reserve Preview: Forecast from 19 major banks

Key quotes

“The EU published the final version of February inflation, which met the market’s expectations by printing at 0.9% YoY. The core annual reading resulted in 1.1%.”

“The  Fed is widely anticipated to remain on hold but maybe be a bit more optimistic about an economic comeback. Speculative interest will be looking for comments about rising yields and whether chief Jerome Powell has changed his view on inflation.”

“The EUR/USD pair is neutral-to-bearish in the near-term. It’s holding above the 61.8% retracement of its November/January rally but at risk of losing it. In the 4-hour chart, the pair is developing below all of its moving averages, with the 20 SMA providing resistance at around 1.1920. The upcoming direction will depend on yields and how they react to the Fed’s decision.”