EUR/USD: Quick Round Trip From North To South

The FOMC-induced gains have evaporated amid low conviction to promote further USD selling. One of the key reasons hindering the upside potential can be found in the still relatively high appeal to jump back into the USD bandwagon in an environment of lower volatility, which makes the countries with a yield advantage, as in the case of the United States, an attractive destination amid the lack of FX alternatives. The U-turn type of movement since the FOMC found pockets of demand at 1.1340-45. The volume profile is characterized by a triple distribution down, with the NY close sub POC a negative development, even if the overall technical structure still lacks bearish credentials. Instead, until further price dynamics play out, the structure is best described as a wide 100p range, despite the clear refusal to find acceptance above 1.14 makes for a tentative 1.1340-1.14 range box as reference heading into Friday. Only an hourly close back above the $1.14 handle would start to suggest a potential resumption of the uptrend, which at this stage, given the abrupt retracement, is not the preferred case. Stay proactive analyzing technicals, especially in a market so choppy and directionless from a weekly standpoint as the Euro vs USD is.