FXStreet reports that economists at Credit Suisse note that EUR/USD is seen at risk to a test of its 55-day average at 1.2080 – potentially price/retracement support at 1.2053/51 – but with this ideally holding.

“The immediate risk stays seen mildly lower going into the Fed for a test of the rising 55-day average, now at 1.2080. With the mid-May low and 38.2% retracement of the rally from late March not far below at 1.2053/51 our bias remains to then look for a floor here post the Fed. A break though would expose the 200 - day average and May low at 1.1996/86.”

“Failure to hold the 1.1996/86 support on a closing basis would reinforce the broader sideways range that has been in place all year, opening the door to further weakness to 1.1942 next, then 1.1928/18.”