EUR/USD rejected from 1.1200 again, drops back toward 1.1150

EUR/USD failed to hold to gains and is about to end Tuesday with a modest decline ahead of two key central bank meetings.

The pair rose during the Asian session above 1.1200 but since then it moved with a bearish bias, retreating at a slow pace. It turned negative after Wall Street opening bell and bottomed at 1.1154, slightly above Monday and last week lows.

During the day EUR/USD moved in a range of 50 pips for the second day in a row, ahead of the Federal Reserve decision. On Wednesday at 18:00 GMT the US central bank will release a statement with its decision and then at 18:30 GMT Janet Yellen will held a press conference. Before that, during the Asian session it will be the turn of the Bank of Japan.

EUR/USD technical outlook

“The technical stance is neutral according to the 4 hours chart, with the downside slightly favored, given that the price continues trading below directionless moving averages, and the technical indicators head nowhere around their mid-lines”, said Valeria Bednarik, Chief Analyst at FXStreet.

According to her EUR/USD is in the midway between long-term trend lines, “a longer one being the ascendant trend line coming from 1.0505, around 1.1060, and a daily descendant trend line coming from 1.1615 around the 1.1280 level. Those are probable targets in a high-profile decision coming from the FED, with a daily close beyond any of them probably signaling some follow through over the upcoming weeks.”