EURUSD

The euro is trying to move higher against the US dollar but is finding life difficult despite the greenback showing signs of short-term weakness. Technically, the short-term trend remains supportive, but if the US dollar regains upside strength in the coming days, we could see a sharp pullback in the euro

Key Indicators

• Despite the recent rebound, the currency pair remains below the 100/200-day SMA's, and RSI remains below 50, suggesting weak buying momentum.

Fundamental Context

The currency pair has been consolidating sideways over the past few trading hours following its recent rebound. Given the backdrop of the expected FOMC announcement and the Eurozone inflation readings, the EURUSD pair may come under downward pressure later this week.