The EURUSD continues to consolidate as it awaits the outcome of the FOMC monetary policy meeting on Wednesday night. The euro was up 0.15 percent against the dollar near market close on Tuesday.
Central bank officials are meeting this Tuesday and Wednesday to discuss the central bank's monetary policy. While no changes are expected, some observers expect the FOMC to announce a future reduction in the pace of asset purchases.
Others believe that the FOMC will not announce anything until after the fall, while more Americans get their shots and the risk generated by the Delta variant diminishes.
In the meantime, it is the rates of the American government bonds which played against the green bill, according to Kathy Lien, of BK Asset Management.
In terms of technical analysis, the EURUSD has been consolidating in a range between $1.1845 and $1.1752 for roughly ten days. A breakout from this range will indicate the next move for the EURUSD.
(Chart Source: Tradingview 27.07.2021)
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