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EUR/USD remains in a consolidation phase above 1.1500 following gains on Monday and Tuesday, with technical indicators suggesting a loss of bearish momentum. Traders are now shifting focus to the Federal Reserve's upcoming policy decisions, which could influence the pair's near-term direction. The pair's stability above 1.1500 indicates potential support, but uncertainty around the Fed's stance on interest rates and inflation remains a key driver. The Fed's policy announcement will directly impact USD strength and EUR/USD volatility. A dovish Fed could weaken the USD, pushing EUR/USD higher, while a hawkish stance might pressure the Euro. Traders are likely to adopt a cautious approach ahead of the decision, avoiding large positions until clarity emerges. For markets, the critical event is the Fed's meeting outcome, which may trigger a breakout in EUR/USD. Investors should monitor the Fed's statements and economic data for clues about future USD movements. Key levels to watch include 1.1500 (support) and 1.1600 (resistance). The pair's technical setup suggests a potential bullish bias if the Fed signals rate cuts.
