The pair has been trading in a range of 1.12755-1.2820 since the end of last week, having calmed down after the release of statistics for the US labour market. The market has been slack today in the run-up to FED's meeting. We are likely to hear that the Regulator will base its decision on interest rates on economy recovery indicators, but investors need more concrete information. If the FED hints that interest rates will be raised soon, the US currency will be supported greatly and the pair will be able to break down the nearest resistance level and refresh its multi-year highs. If not, the US dollar will be under pressure.
Technically, the pair is trading sidewards, and we can trade from the borders of the channel until the FED's meeting.
Support and resistance
The support levels are at 1.2775, 1.2755, 1.2730, 1.2700. The resistance levels are at 1.2800 and 1.2820, with the latter being bulls' main target.
Long positions should be opened above 1.2825 and from a level of 1.2755. Sell below a level of 1.2730. Limit Sell orders should be placed near the upper border of the channel at 1.2820.