Dollar fails to strengthen before Fed decision

Bears were dominating the development of the EUR/USD currency pair for the most part of Wednesday. However, eventually they lost advantage and the Euro surged back close to the 1.13 mark, despite initial losses expanding down to 1.1213. Trading is expected to be extremely volatile on Thursday, keeping in mind the most important decision of the Fed in almost a decade. In case they raise interest rates, we may observe EUR/USD slumping down to SMAs below 1.1150. On the other hand, a decision to refrain from the move may send the pair as high as 1.14 in the next 24 hours.

EUR/USD's sentiment was unchanged at 47% yesterday. On the other hand, the portion of long pending orders in 100-pip range from the spot decreased slightly from 60% to 58%.