Euro pulls back ahead of the Fed meeting

Taking a look at the EUR/USD pair ahead of the Fed meeting as we can see the dollar has regained some strength. The pair reached a high of €1.0981 in March but has since fallen off. Currently, the euro is trading at €1.0841 against the dollar. The 4-hourly chart shows that the pair has pulled back towards its 200-day moving average, the moving average is a key level of support here for the forex pair. The 200MA currently reads €1.0832, a break and close below this level would suggest that the bears may be in control once again with the dollar recovering some recent losses. A fall below €1.0832 would allow the bears to eye up the next key support level of €1.0800. However, the near-term price movement may in fact be determined by the outcome of the Fed meeting. If the Fed strikes a hawkish tone then pressure for the euro would certainly increase, but if a dovish approach is taken by the markets, then the pair may consolidate along the 200MA. Inflation around the world is cooling, and even though recent data in the US came in hotter-than-expected, it doesn’t seem a major concern for the Fed as of yet. Looking at the technical indicators, they are now pointing towards further downside as near-term bias has turned bearish. But again, the outlook will be clearer after the Fed meeting.