EUR/USD falters around its 2023 open price, ahead of FOMC
Yes, EUR/USD has fallen to a key support level around the May low. And that will likely deter some bears around current levels from entering short (depending on their timeframe). But given the potential for for the Fed to deliver a more hawkish message than money markets are pricing in whilst the ECB suggest they are done tightening, we're not discounting the potential for EUR/USD to break lower.
The daily trend remains bearish and a shooting star formed following a 2-day retracement higher. Its high perfectly respected a 61.8% Fibonacci retracement level before the day closed back beneath 1.070.
But what has really caught our eye is that prices also faltered around the 2023 open price. And that means the euro really has gone nowhere this year, and the market is paying attention to that open price.
Given the corrective price action on the 1-hour chart, we'd prefer to fade into move up towards or around 1.0700 for a move back towards those lows.
The bias remains bearish below 1.0730 (although keep in mind extra levels of volatility around the FOMC meeting can mess with such levels before the real move begins).
The daily trend remains bearish and a shooting star formed following a 2-day retracement higher. Its high perfectly respected a 61.8% Fibonacci retracement level before the day closed back beneath 1.070.
But what has really caught our eye is that prices also faltered around the 2023 open price. And that means the euro really has gone nowhere this year, and the market is paying attention to that open price.
Given the corrective price action on the 1-hour chart, we'd prefer to fade into move up towards or around 1.0700 for a move back towards those lows.
The bias remains bearish below 1.0730 (although keep in mind extra levels of volatility around the FOMC meeting can mess with such levels before the real move begins).
