Dollar Holds Firm Ahead of FOMC, EUR/USD Eyes Recovery

The US dollar is holding firm ahead of the FOMC meeting, with strong support now acting at previous resistance around 99.48 – 99.68. Markets expect no rate change today. The focus will be on Fed guidance and the press conference. Rate cuts are still expected later, but not soon, which is supporting the dollar for now.

Technically, the dollar remains in an uptrend, with resistance near 100.40. Although the dollar was recently overbought, the pullback has been healthy, and buyers are still in control. Rising oil prices and Middle East tensions continue to support inflation expectations, making it harder for the Fed to sound dovish.

DXY Daily Chart

For EUR/USD, the earlier sharp drop below 1.1500 has paused, with the price now showing a short-term recovery. Key resistance levels to watch are 1.1578 and 1.1655, where sellers may step back in. Overall, the dollar remains supported, but the next move will depend heavily on the Fed’s tone and market reaction after the FOMC.

EUR/USD 4 Hour Chart