The Euro is trading slightly lower on Tuesday but continues to hover close to a two-month high reached on Monday. Volume and volatility are on the light side as the U.S. Federal Reserve begins a two-day policy meeting. Helping to cap gains are firmer Treasury yields.
At 12:17 GMT, the EUR/USD is trading 1.2087, down 0.0005 or -0.04%.
The Fed is not expected to announce any changes to its policy but investors will be keeping a close eye on comments from Fed Chairman Jerome Powell, in a press conference following the meeting on Wednesday afternoon.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. A trade through 1.2117 will signal a resumption of the uptrend. The main trend will change to down on a move through 1.1994.
The short-term range is 1.2243 to 1.1704. The EUR/USD is currently trading on the strong side of its retracement zone at 1.2038 to 1.1947, making it support.
The main range is 1.1603 to 1.2349. Its retracement zone at 1.1976 to 1.1888 is the primary support.
A pair of 50% levels at 1.1976 to 1.1974 form an important support cluster.
Daily Swing Chart Technical Forecast
Look for an upside bias on Tuesday as long as 1.2038 holds as support. If this is able to create enough upside momentum then look for buyers to make a run at the minor top at 1.2117. Taking out this level could extend the rally into the next minor top at 1.2113.
If 1.2038 fails as support then look for a break into the main bottom at 1.1994. Taking out this level will change the main trend to down. The next target is 1.1976, followed by another main bottom at 1.1943.
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