EURUSD has been in a downward trend for a long time. While the volatility on the main currency pair has been elevated recently, today's FOMC decision may lead to even bigger moves. What's next for EURUSD? Will sellers manage to uphold the downward trend and push the price to new multi-year lows? Below, we have provided a quick update of the technical situation.
Looking at the D1 interval, the EURUSD is moving within the downward channel. Despite several attempts of breaking above the upper limit of the above-mentioned channel at the end of May and at the beginning of June, it was the sellers who eventually maintained control, which sparked the current downward impulse. After the pair returned below the 1.0636 zone, the sell-off accelerated, and this week support at 1.0490 has been breached, which may have serious consequences for the demand side. According to the classic assumptions of technical analysis, break below the above-mentioned support opens the way towards fresh minimums. Moreover, taking into account the long-lasting downtrend, it is even possible to attack the external Fibonacci measures - 127.2% and 161.8% of the last upward correction. The first major support is therefore located at 1.0231, and the second can be found at 1.0075. Of course, a lot will depend on the FOMC decision today, which will be released at 7:00 pm BST.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile app
EURUSD interval D1. Source: xStation5
When looking at the H4 interval, one can notice that the strength of supply is even greater. Today's attempt to perform an upward correction was quickly interrupted and the pair reached new lows. Currently, the zone at 1.0335 remains the key support. Its negation could push the pair towards supports determined on the D1 interval.
EURUSD interval H4. Source: xStation5
