Late in the American session the FOMC is expected to announce its interest rate decision. The bank is widely expected to remain on hold and currently Feds Funds Futures imply a probability of 96.37% for that scenario. As the bank is expected to remain on hold, market focus may shift to the accompanying statement which may contain comments about the high inflation rate, the strong GDP growth rate and the low unemployment level. A number of analysts seek a clear message for the possible 2 future rate hikes in 2018, especially after recent comments made by US president Trump. A neutral to hawkish tone in the accompanying statement could support USD, while a neutral to dovish tone may weaken it.
EUR/USD continued its sideways movement yesterday testing the 1.1745 resistance line and correcting lower later on. The pair could experience some bearish tendencies today should the FOMC meeting favor the USD side. Should the bulls take over the market we could see the pair breaking the 1.1745 resistance line. On the other hand should the bears take over we could see the pair breaking the 1.1640 support line and aim for the 1.1580 support barrier.