EUR/USD is consolidating ahead of the FOMC!

11 Okt 2023

EUR/USD trims its gains for the day, hovering around the key psychological level of 1.0600 during the European session on Wednesday. The pair received some upward support due to a correction in the US Dollar (USD), likely influenced by speculations about a potential pause in the interest rate-hike cycle by the US Federal Reserve (Fed). If the pair decisively breaks below this level, it may face increased downward pressure, potentially targeting the area around the nine-day Exponential Moving Average (EMA) at 1.0572, followed by the significant level at 1.0500. On the upside, resistance for the EUR/USD pair could materialize around the 23.6% Fibonacci retracement level at 1.0643. A solid breakthrough beyond this could pave the way for further exploration toward the psychological level at 1.0650. The Moving Average Convergence Divergence (MACD) line currently sits below the centerline, indicating that the short-term average is trailing the long-term average. However, an important observation is the divergence of this line above the signal line, suggesting a potential shift in momentum toward a bullish trend. Nonetheless, the prevailing momentum for the EUR/USD pair remains bearish, highlighting a persistent weaker bias, as indicated by the 14-day Relative Strength Index (RSI) holding below the 50 level. Comment and leave a like, greetings from Nicola the CEO of Forex48 Trading Academy.