The Fed holds its finial meeting of the year on Wednesday. Many market participants expect a hike in US interest rates, so if the forecast is confirmed, the European currency is likely to weaken.
However, as long as has not reached the target level of 2% yet, it might be seen as a determining factor for a forthcoming decision. Another negative aspect is Manufacturing PMI which came in below the key level of 50 points. This data might indicate a slowdown in economic growth.
Thus, in its decision making, the Fed will consider labor market statistics, rate and the world economic situation.
Support and resistance
Since the opening of the trading day, the European currency has been slightly declining against the US Dollar .
The key is still at 1.1040 the breakout of which would allow the price to continue growing towards 1.1150-1.1200.
Support level: 1.0925.
The nearest resistance level: 1.1055.
Short positions can be opened after the breakdown of the level of 1.0925 with the target at 1.0875 and stop-loss at 1.0950.