EUR/USD: the euro should consolidate on the forex ahead of this week's FOMC meeting, but we favour selling on rallies (UBS)

UBS believes that the EUR/USD will likely consolidate on the forex ahead of the FOMC but it favours selling on rallies.

"The EUR/USD should consolidate in the 1.1900/1.2000 range before the FOMC meeting this week (Wednesday and Thursday).

We therefore favour short positions on rallies toward 1.2000, with tight stops above Friday's top near 1.2030.

The support levels are at 1.1850, 1.1830 and 1.1800. Resistance levels are at 1.1990, 1.2010 and 1.2050."