May 7 (Reuters) - Consolidation set in for the euro ahead of the Federal Reserve policy decision, keeping current range parameters intact with support at 1.1250-80, while resistance lies between 1.1400-25. In a sign of de-escalating tensions between the U.S. and China, trade talks were announced for May 10. Though what was perhaps more surprising was the resilience in the euro, which is an encouraging sign for those bullish on the single currency. Prior positive U.S.-China trade sentiment had led to a notable reaction across U.S. equities, gold and the euro. Thus, the lacklustre reaction would suggest the stronger catalyst is needed to shake the bias of gold and euro upside, while further upside in U.S. equities may be harder to come by. And, U.S. stocks don't appear to be out of the woods yet.

With the aforementioned parameters defining the range for EUR/USD, it a would take a move below 1.1200 to prompt a rethink for longs, while a break above 1.1425 could see an impulsive knee-jerk move back to 1.1500.
eurusd daily/hourly chart

(Justin McQueen is a Reuters market analyst. The views expressed are his own.)