EUR/USD bullish, targets 1.13 on third wave

Hi traders, the EUR/USD pair retraced at the channel support as expected and started to move upwards.

Volatility is still low as markets await the Fed meeting today.

The Fed is expected to lower rates by 25 basis points, however Powell insisted that the rate cut shouldn't be considered as a beginning of a long-lasting easing cycle, unless we see more weak data from the US. This could in fact support the US dollar in the coming period.

Anyways, the technical picture of EUR/USD shows that the third correction wave might be forming, targeting the 1.13 level (horizontal resistance.)

While we're still bullish on the pair (we have a long position open), traders should be careful as a hawkish Fed (despite a rate cut) could send the pair down.

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