Looking at the benchmark EUR/USD currency exchange rate, the euro currency is on the defensive against the U.S. dollar as price action has dipped below 1.19 during the early Asian trade session.
Forex traders are waiting on the monetary policy and rate decision from the U.S. Federal Reserve due out during the North American trade session.
The U.S. Federal Reserve is going to indicate the excellent timing and size of massive $1.9 trillion pandemic rescue fiscal policy bill. The Federal Reserve is also going to mention quarterly economic forecasts and the Fred Funds Rate (FFR) dot plot.
Euro currency and dollar traders are going to play close attention to what Federal Reserve Chair Jerome Powell says about inflation as well.
There are other factors weighing on sentiment today. Iran us supposedly building a secret nuclear weapons site. Also North Korea is supposedly ready to test a long range intercontinental ballistic missile. (ICBM).
The United States is considering fresh sanctions against Russia and the U.S. is preparing to hold talks with China. Also weighing on the EUR/USD Forex market are coronavirus vaccine problems in the European Union.
Daily Euro Currency Technical Analysis (EUR/USD)
Looking at the above daily MT 4 price action chart, the euro currency is challenging below the 1.19 downside barrier. The next layer of support lines up at the congestion area at 1.1885 to 1.1880/81.
The EUR/USD is also trading below the short-term twenty (20) day simple moving average (SMA) and above the two hundred day simple moving average.
The price risk is skewed lower as Forex traders wait on the next catalyst. The next layer of technical support lines up at 1.1840 with 1.1795 then coming into play.
On the upside, there is immediate technical resistance in play at 1.1930. A daily close above this level opens the door to challenge 1.1975. Above 1.1975 the upside barrier in play at 1.2020 comes into focus.