EURUSD could return the previous week’s low of 1.0521.
The EURUSD is consolidating ahead of the Federal Open Market Committee (FOMC) policy decision. With the expectation that the current interest rate of 5.5% would be maintained at the November meeting. During the Asian session on Wednesday, the pair is trading down near 1.0570.
In a report released on Tuesday, the Eurozone Harmonized Index of Consumer Prices (HICP) showed. A dramatic slowdown, falling from an annual rate of 4.3% to 2.9% in October. This considerable slowdown in consumer prices corresponds to market views. That the European Central Bank (ECB) will not pursue more interest rate hikes. Furthermore, the looming chances of a recession may continue to undermine the EURUSD pair.
EURUSD Technical Outlook
The EURUSD pair may find support near the psychological level of 1.0550. Which is followed by the previous week’s low of 1.0521. If the pair clearly breaks through the latter. It may pave the way for further downward volatility towards the crucial mark around 1.0500.
The Moving Average Convergence Divergence (MACD) line is located below the centerline but above the signal line. Indicating a probable momentum shift. This sophisticated market attitude shows a combination of elements signaling a probable shift in the current direction.
Investors will be paying particular attention to the Federal Open Market Committee’s (FOMC) post-meeting communication. to forecast interest rate movements. Any dovish comments might push the pair higher approaching the crucial resistance level near the 23.6% Fibonacci retracement level at 1.0648. The 50-day Exponential Moving Average (EMA) at 1.0650 adds to the difficulties.
A successful break above the stated resistance levels might energize the EURUSD pair and send it back to its October high of 1.0694.
The EURUSD pair, on the other hand, appears to be facing limited momentum, as the 14-day Relative Strength Index (RSI) is below the 50 level, indicating bearish momentum and a bias towards a weaker market sentiment.
