Recovery attempts to remain short-lived as the 1.13 resistance caps

EUR/USD has recovered modestly after dropping to fresh monthly lows. Nonetheless, bears are to remain in control as 1.1300 resistance stays intact, FXStreet’s Eren Sengezer reports.

Investors wait for the US Federal Reserve to announce its policy decisions

“The Fed is widely expected to leave its policy rate unchanged while confirming that the first-rate liftoff will happen in March. In case the Fed notes that every meeting will be live after March, this could be seen as a hawkish development and cause EUR/USD to come under renewed bearish pressure. On the other hand, a cautious stance by the FOMC could provide relief to US stocks and make it difficult for the dollar to find demand.”

“On the downside, 1.1270 (static level) aligns as the next bearish target ahead of 1.1250 (static level) and 1.1230 (static level).”

“Resistances are located at 1.1300 (psychological level), 1.1330 (200-period SMA) and 1.1350 (100-period SMA, 50-period SMA).”