• EUR/USD comes under pressure and challenges parity.
• Immediately to the downside comes the weekly low at 0.9944.

EUR/USD triggers a corrective downside soon after hitting multi-session highs around 1.0050 on Tuesday.

The pair seems to have embarked on a consolidative range ahead of the key FOMC event on Wednesday. Immediately to the upside comes the interim 55-day SMA at 1.0097 ahead of the key 7-month resistance line, today near 1.0150. A move beyond the latter is needed to mitigate the downside pressure and allow spot to confront the September high at 1.0197 (September 12) ahead of potential extra gains.

In the longer run, the pair’s bearish view is expected to prevail as long as it trades below the 200-day SMA at 1.0716.

EUR/USD daily chart