Current trend

Yesterday was calm for the EUR/USD ahead of FOMC's meeting. Only by evening had the pair risen slightly in price. Many thought that FED's comments on an interest rate rise would be more concrete, to no avail. FOMC hinted that a rise would be reliant on further labour market indicators and inflation rate change.    It's worth noting that the dollar was greatly overbought, but did not live up to expectations.  The pair managed to reach a level of 1.1015 after FED's meeting, but got back promptly to a level of 1.0840 which coincides with 38,2% Fibonacci retracement.

Support and resistance

The pair has been moving downwards today and is currently trading a bit below 23,6% Fibonacci retracement (1.0690). The readings of technical indicators are varying.  Stochastic is in the oversold zone and has not produced any signals yet. The price is testing M50 moving average. If it fails to break it down, the pair will get back to a level of 1.0750 .

Resistance levels: 1.0690, 1.0720, 1.0760, 1.0800, 1.0840.

Support levels: 1.0654, 1.0615, 1.0580.

Trading tips

Long positions should be opened above a level of 1.0700 with targets at 1.0800 and 1.0840. Short positions will be relevant once the pair has broken down a level of 1.0650.

 EUR/USD: analysis and forecast




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