(MENAFN- Daily Forex)

• The euro rallied against the US dollar but now faces resistance near 1.1650.
• With uncertainty surrounding upcoming Federal Reserve decisions, trading appears choppy, and the broader bias still leans slightly negative despite recent dollar softness.

On Monday, we saw the euro rally quite nicely against the US dollar, but it looks as if it is going to run into a little bit of trouble at the 1.1650 level. While we have broken above a bit of a downtrend line, it is worth noting that we still have yet to make a new high. Whether or not we can remains to be seen. And I think at best, this is probably going to be a neutral market going forward. And that would make a certain amount of sense.

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In the short term, at least, we are waiting to see what the Federal Reserve is going to end up doing. After all, traders had initially thought that the Federal Reserve was going to cut to the bone. But in September, we got a statement and a press conference from Jerome Powell that threw a lot of questions into that equation. So, at this point in time, I think you still have a situation where the US dollar probably strengthens over the longer term. But this is going to be very noisy, to say the least. We find ourselves bouncing around the 50-day EMA at the moment. And it's worth noting that although the US dollar has been a little softer over the last couple of days, it's not exactly like there's been a lot of momentum in favor of the euro either. I think we are in a timeframe that is going to be very uncertain. And as a result, you will see a lot more of this choppy behavior out there.

EURUSD Chart by TradingViewOn a Move Lower...

If we do break down from here, the 1.14 level would be targeted with a 1.18 level on the top of the range being targeted if we do, in fact, start to see momentum. At this point, though, I think we're waiting around for the Federal Reserve interest rate decision and perhaps more importantly, the statement to really make the bigger move. We'll have to wait and see how that plays out. But as things stand right now, I still think we're probably going sideways with a slightly negative tilt.

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