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August US Retail Sales came in much worse than anticipated and the dollar is under pressure ahead of the US Federal Reserve monetary policy decision. Nonetheless, the EUR/USD pair is holding below the 1.1900 level, maintaining its neutral technical stance in the short-term, FXStreet’s Chief Analyst Valeria Bednarik reports.

Key quotes

“Pressure on the greenback has been exacerbated by the recently published August Retail Sales, which came in at 0.6%, below expected. Retail Sales Control Group, contracted to -0.1%, missing expectations of 0.5%. As for the Fed, the central bank is expected to maintain its current policy unchanged, although the market is hoping for more details on the recent shift to average inflation. Policymakers will also unveil fresh forecasts on employment, inflation and growth.”

“The 4-hour chart shows that the EUR/USD pair is back to the 1.1850 price zone, hovering around directionless moving averages. Technical indicators, in the meantime, have turned lower, now standing within neutral levels. It’s all about the Fed and how the market takes the announcement. Nevertheless, the dollar has little chances of turning bullish, despite this latest pullback in EUR/USD.”