Daily Technical Analysis EUR/USD: Hits Multi-Year Highs Ahead of Fed Rate Decision

EUR/USD edged higher on Tuesday, rising 0.2% as the pair continues testing the 1.0950 region. The euro reached a fresh 23-month high, supported by improved risk sentiment ahead of the Federal Reserve’s interest rate decision on Wednesday. Final European Harmonized Index of Consumer Prices (HICP) figures are also due midweek, though no major revisions are expected. European Central Bank (ECB) President Christine Lagarde is scheduled to speak on Thursday as the EU leaders’ summit begins.

Fed Expected to Keep Rates Unchanged

The Federal Reserve will announce its latest monetary policy decision on Wednesday. Market expectations, as reflected in the CME FedWatch Tool, indicate that rates will likely remain steady for the next two meetings, with a possible quarter-point cut anticipated at the June Federal Open Market Committee (FOMC) meeting. The Fed’s updated interest rate projections, also set for release, could shift expectations if policymakers’ outlook differs significantly from current market pricing.

EUR/USD Daily Technical Analysis for March 19th

From a technical perspective, the Stochastic Oscillator remains in overbought territory above 80.00 but is flattening, signaling waning bullish momentum. The Moving Average Convergence Divergence (MACD) indicator is showing neutral green bars, suggesting a lack of strong trend conviction. These indicators point to a potential consolidation phase before a decisive price move.

Resistance is positioned at 1.1000, a key psychological level that has historically capped gains. On the downside, initial support lies near 1.0850, with stronger support at the 20-day moving average around 1.0800. A break below these levels could lead to a corrective pullback, while sustained trading above 1.0900 would reinforce the broader bullish trend.