The general strengthening of the US Dollar against major currencies on Tuesday had a positive impact on the given pair. As a result, the rate manage to strengthen by 0.56%, thus ending the previously-existing four-day period of consolidation.
It is still likely that some upside potential is realised in this session towards the medium-term channel and the 61.80% Fibonacci retracement near 110.20. This movement should be guided by the 55– and 100-hour SMA. Further advance is not expected during the first part of today.
Meanwhile, the Fed is to release its Monetary Statement at 1800GMT. Traders expect that a rate hike has to be put on hold this time; thus, a surprise would introduce massive volatility in the market and consequently breach the nearest support and resistance levels.
