EUR/USD Stalls Near 1.0500 Ahead of Fed Decision

The EUR/USD pair is trading near 1.0500 on Wednesday, struggling to gain significant momentum. The 20-day Simple Moving Average (SMA) at 1.0550 continues to cap upside potential, suggesting a cautious market sentiment.

Technical Analysis

Technical indicators point to a lack of directional bias. The Relative Strength Index (RSI) is hovering around 42, indicating neutral momentum. The Moving Average Convergence Divergence (MACD) histogram shows a flat line, further supporting the idea of range-bound price action.

Market Outlook

The upcoming Federal Reserve interest rate decision is the key event to watch. A more hawkish-than-expected stance from the Fed could strengthen the US Dollar and weigh on the EUR/USD pair. Conversely, a dovish outcome could boost risk sentiment and support the Euro.

In the absence of a clear breakout, the pair is likely to remain range-bound between the 1.0500 and 1.0480 support levels. A decisive move above the 20-day SMA could signal a shift in momentum and potentially lead to further upside.