EUR/USD Awaits FOMC Statement Amid Challenging Technicals
EUR/USD is testing crucial levels ahead of today's FOMC statement, having previously exhibited weakness. It has been moving slowly downwards inside of its descending channel. Despite rebounding from support at 1.080 and challenging resistance at 1.0900, the pair broke through a key trendline, underlining the market's bearish sentiment even against a backdrop of consistent CPI data from both the Eurozone and the U.S.
Technical analysis indicates a pivotal moment as EUR/USD approaches 1.0900 resistance which it tried to break multiple times without any success and pushed the price lower, showing us that a lot of sellers are sitting at that 1.09 level. The pair's next move could be heavily influenced by today's FOMC statement, with a break above 1.0900 signaling potential bullish momentum or a hold below hinting at continued consolidation or further decline, depending on what the Fed states.
Our position remains cautious, with a focus on the FOMC's language for direction, while monitoring the trendline and resistance interplay for trading opportunities. We are waiting for new entries as we exited our positions, we started shorting when it broke the 1.090 line and continued to trade the channel. For now, everything depends on the FOMC Statement.
Technical analysis indicates a pivotal moment as EUR/USD approaches 1.0900 resistance which it tried to break multiple times without any success and pushed the price lower, showing us that a lot of sellers are sitting at that 1.09 level. The pair's next move could be heavily influenced by today's FOMC statement, with a break above 1.0900 signaling potential bullish momentum or a hold below hinting at continued consolidation or further decline, depending on what the Fed states.
Our position remains cautious, with a focus on the FOMC's language for direction, while monitoring the trendline and resistance interplay for trading opportunities. We are waiting for new entries as we exited our positions, we started shorting when it broke the 1.090 line and continued to trade the channel. For now, everything depends on the FOMC Statement.
Trade closed: target reached:
As the price got back to the upper trendline of the channel, we got some short positions. The Fed didn't change the interest rate, it is still 5,50% as expected. Their statement didn't give us any conclusive information about their view on the economy, but a rate cut is possible in March which could bring the dollar down. In the meantime, the dollar rose after the statement and brought down all use pairs. We exited our positions as the price came to the lower trendline of the channel, catching a great trade.