EUR/USD: Majority of Traders Long, Buying Dips Ahead of FOMC Meeting

EUR/USD positioning data reveals that a majority of retail traders are holding long positions, actively buying dips ahead of the pivotal FOMC event. This contrarian indicator warrants attention, as historically elevated long positioning among retail participants can signal potential downside risk for the pair. The broader risk environment remains cautious, with US equity benchmarks including the S&P 500 and Nasdaq 100 showing mixed performance as technology heavyweights like NVIDIA and Amazon navigate earnings expectations and macroeconomic uncertainty. EUR/USD has attracted dip buyers near short-term support levels, reflecting underlying bullish sentiment toward the euro or expectations of a dovish Fed outcome. However, the crowded long positioning creates vulnerability to a sharp squeeze lower if the Fed delivers a hawkish surprise. Technical levels to watch include the recent range lows as critical support, while resistance is defined by the upper boundary of the current consolidation pattern. Traders should exercise caution given the asymmetric risk posed by the positioning imbalance heading into a high-impact central bank event.