EUR/USD drops before FOMC; uncertainty remains

The US currency skyrocketed versus the Euro on Tuesday, by rallying circa 150 points to 1.0930. This level is placed under both 55-day SMA and weekly PP. On Wednesday morning we are observing a light trading, in anticipation of the most important Fed decision in recent years. Markets remain very cautious, as they suggest a hike is already priced into the Dollar. In case the FOMC disappoints from the side of future hike expectations, the EUR/USD may quickly bounce back towards yesterday highs at 1.1058 (100-day SMA). A hawkish surprise should give USD a boost up to 1.08 (Dec 7 low).  

SWFX traders are preserving the status-quo for the moment, being that distribution between the bulls and bears is flat for a fourth day in a row at 45% versus 55%.