The pair trades in red on Wednesday following repeated failure to close above important barriers at 111.61/75 (daily cloud top/Fibo 61.8% of 114.49/107.31 descend), which were dented on short-lived spike to 111.87 on Tuesday. Long-legged Doji that was left yesterday and today’s fresh easing are forming reversal pattern which requires today’s close in red for completion. Strongly overbought slow stochastic on daily chart warns of correction with close below broken 100SMA (111.11) to generate fresh bearish signal and further dent larger bulls from 107.31 (08 Sep low). With technical studies pointing to stronger corrective action, focus turns towards Fed’s announcement later today. Hawkish tone from FOMC would bring bulls back to rails for fresh acceleration higher and probe above next target at 112.20 (200SMA). Dovish Fed would put the greenback under fresh pressure and confirm reversal scenario.
Res: 111.75; 111.87; 112.23; 112.80
Sup: 111.11; 110.98; 110.61; 110.17
