EUR/USD remains a focal point in the FX markets, especially post-FOMC announcement. The currency pair has been trading within a descending channel, indicating a short-term downtrend within a broader context of market anticipation regarding rate decisions on both sides of the Atlantic.
Technical Analysis:
EUR/USD is rebounding from the channel's support level at around 1.07200, suggesting a demand zone that bulls are defending. However, the pair faces a significant test at the 1.0800 mark, which has acted as a robust support level which it broke and is on its way to retest it and confirm as a resistance. The pair's inability to break above this line in the past suggests a strong selling interest at this level.
Market Context:
Last week’s economic data showed that the USD is strengthening and the market is now digesting the Fed's latest remarks.Although Powell confirmed that there will be rate hikes coming, most probably 3 this year each by 0,25%- it won’t be in March.
Our Position:
With the FOMC statement not offering decisive direction, we remain watchful for breakout signals. Our previous shorts within the channel were fruitful, and we're now assessing if the post-FOMC reaction will provide new setups. A breach of 1.0800 could offer bullish entries, while a rejection at this level could reinforce the current bearish channel structure.
Technical Analysis:
EUR/USD is rebounding from the channel's support level at around 1.07200, suggesting a demand zone that bulls are defending. However, the pair faces a significant test at the 1.0800 mark, which has acted as a robust support level which it broke and is on its way to retest it and confirm as a resistance. The pair's inability to break above this line in the past suggests a strong selling interest at this level.
Market Context:
Last week’s economic data showed that the USD is strengthening and the market is now digesting the Fed's latest remarks.Although Powell confirmed that there will be rate hikes coming, most probably 3 this year each by 0,25%- it won’t be in March.
Our Position:
With the FOMC statement not offering decisive direction, we remain watchful for breakout signals. Our previous shorts within the channel were fruitful, and we're now assessing if the post-FOMC reaction will provide new setups. A breach of 1.0800 could offer bullish entries, while a rejection at this level could reinforce the current bearish channel structure.