EUR/USD Price Analysis: Rising wedge teases bears around 0.9900 despite pre-Fed inaction

• EUR/USD stays defensive around one-week low inside a bearish chart pattern.
• Downbeat oscillators strengthen bearish bias but 200-SMA acts as an extra filter to the south.
• Weekly resistance line guards immediate recovery ahead of October’s peak.

EUR/USD aptly portrays the pre-Fed anxiety around 0.9885 during Wednesday’s Asian session. In doing so, the major currency pair extends the previous day’s sluggish performance near the weekly low. However, a five-week-old rising wedge bearish formation intensifies the market’s interest in the quote ahead of the key Federal Open Market Committee (FOMC) meeting.

Given the recent bearish MACD signals and the downbeat RSI, the EUR/USD prices are likely to remain softer.

That said, a one-week-old descending trend line restricts the pair’s nearby upside, close to 0.9930.

Also acting as an upside filter is the 61.8% Fibonacci retracement level of the EUR/USD’s September 12-28 downside, near 0.9945.

In a case where the quote rises successfully past 0.9945, the 1.0000 psychological magnet and October’s peak of 1.0093 will precede the 1.0100 round figure to test the pair’s advances.

Additionally, the upper line of the stated wedge, near the 1.0120 level by the press time, also acts as an upside filter for the EUR/USD bulls to watch before targeting September’s top of 1.0198.

Meanwhile, pullback moves remain elusive unless breaking the aforementioned bearish formation’s support line, close to 0.9845 at the latest. Even so, the 200-SMA level around 0.9825 could act as an additional test for the EUR/USD bears before taking control.

In that case, the bears could quickly aim for the yearly low of 0.9535, with 0.9670 likely acting as an intermediate halt during the anticipated slump.

EUR/USD: Four-hour chart

Trend: Fresh downside expected