The US dollar treads water ahead of the Fed meeting. After a limited rebound, the euro’s fall below 1.1750 has put the bulls on the defensive.
The pair is testing the demand zone around 1.1700 with the lower boundary being the critical daily support at 1.1660. A bullish RSI divergence suggests that the sell-off might be losing steam.
We can expect buying interest in this congestion area as the indicator climbs back into the neutrality area. 1.1790 is a key hurdle to clear before a meaningful bounce would happen.