EUR/USD came up to a key level of 1.11 to start the week. I noted that this was a good place for EUR/USD to set up for a bearish continuation. EUR/USD 4H chart 7/29(click to enlarge)The 4H shows that after cracking 1.11, EUR/USD found resistance and start to trade under the 1.11 handle during the 7/29 session. Even though price pushed above a falling trendline, the fact that price held mostly under 1.11 and the 200-period simple moving average (SMA) in the 4H chart show some bearish bias. Now, ahead of the FOMC statement today, EUR/USD has broken a rising trendline. It is an early signal that the market is ready to continue the pair's downtrend. This pre-event pullback suggests that as long as the FOMC does not throw away its rate hike plan, the EUR/USD should be pressured downwards. IF price action does not climb back above 1.11 after the FOMC statement, then, we should anticipate a slide back towards 1.08 area with risk of extending even lower towards the low on the year around 1.0460-1.0520.However, if price does close above 1.11 after the 7/29 global session is over, we should expect some further short-term bullish correction. towards the 1.02-1.0215 resistance area.