The dollar outperforms its major rivals on Wednesday as investors await the outcome of the FOMC meeting. The muted upside momentum reflects some corrective flows after the recent drawdown amid positioning ahead of the Fed.
EUR/USD rally has stalled around a tough local resistance 1.1360, where the 100-DMA lies. Further direction in the pair will depend on the tone from the Federal Reserve. As many traders expect the central bank will strike a dovish tone, any hints at the possibility of one hike this year could send the greenback higher across the board.
On the other hand, should Powell admit the downside risks for the global economy, it will stoke concerns and sour investor sentiment in the global financial markets.
EUR/USD needs to overcome the above-mentioned resistance in order to regain the 1.14 figure that stands as the key immediate target for the bulls. On the downside, the 1.1325 level comes as the intermediate local support on the way to 1.13 and then 1.1285.