EUR/USD Eyes Key Support at 1.1500 Ahead of Fed's Interest Rate Decision

The EUR/USD price is trading cautiously around 1.1545 ahead of the Federal Reserve's monetary policy decision, scheduled for 18:00 GMT on Wednesday.

Market analysts expect the Fed to hike interest rates by 25 basis points (bps) to a range of 3.75%-4.00%, as inflationary pressures remain sticky and above the central bank's 2% target.

ABN Amro analysts frame this move as 'inflation insurance' rather than the start of a long cycle, with a single additional hike pencilled in for the December meeting.

The EUR/USD technical analysis suggests that the pair is trading with a mildly bearish near-term tone, below the 20-day exponential moving average at 1.1590, and with an RSI around 43 sitting in neutral-to-soft territory.