The Euro stands at the back foot and probes below 1.224 handle after overnight’s action was capped at 1.2428.
The single currency eased on Wednesday following repeated upside rejection (1.2375) and sentiment was soured by more hawkish Fed.
The US central bank left interest rates unchanged at its policy meeting which ended on Wednesday but highlighted the confidence in the economic growth and inflation, rising hopes for more rate hikes this year.
However, fresh boost to the dollar did not show stronger impact on the single currency as the pair holds above ascending 10SMA which currently lies at 1.2361 and marks first pivot.
Near-term price action is holding in narrowing range in triangular consolidation after initial attempt through 1.25 barrier failed to sustain gains.
Increased downside risk could be expected on break below 10SMA which would risk test of next pivot at 1.2300 (Fibo 38.2% of 1.1915/1.2537 upleg) and generate stronger reversal signal on break lower.
Daily RSI is holding in sideways mode at the border of overbought area while momentum is falling and could support negative scenario.
On the other side, daily MA’s are in full bullish setup and bias is expected to remain with bulls while rising 10SMA contains dips.
The Fed’s decision needs further signals for confirmation and traders eye a batch of data from the US today and key event – US Non-Farm Payrolls on Friday, to get more clues whether the Fed’s signals would lead towards expected scenario or the central bank is just giving a breather to dollar’s broader bears.

Res: 1.2474; 1.2493; 1.2537; 1.2597
Sup: 1.2385; 1.2361; 1.2335; 1.2300