EURUSD is under pressure as a result of the Fed’s estimate of another rate rise in 2023.
EURUSD extended its losses for the third day in a row. During the Asian session on Thursday, the spot price is trading lower at 1.0640.
The US Federal Reserve (Fed) voted to keep the existing benchmark policy rates at 5.5% at its meeting on Wednesday, as predicted.
The Fed’s forecast for another rate rise in 2023 has put negative pressure on the EURUSD pair. Furthermore, the Federal Open Market Committee stated its monetary policy in its monetary policy statement.
The Federal Open Market Committee (FOMC) anticipates slightly greater inflation than previously predicted.
EURUSD Techincal Outlook
The six-month low of 1.0616 set on Thursday should provide immediate support, followed by the psychological threshold of 1.0600.
On the upside, the 18-day Exponential Moving Average (EMA) at 1.0728 looks to be the main resistance level, which is linked with the 21-day EMA at 1.0742.
A break above the latter might help the pair navigate the zone around the 23.6% Fibonacci retracement at 1.0772, followed by the psychological mark of 1.0800.
The Moving Average Convergence Divergence (MACD) line is still lower than the centerline but at the same level as the signal line. This arrangement indicates that the underlying asset’s price motion is largely neutral, with neither up nor down. Neither bullish nor bearish dominance exists.
However, the EURUSD pair’s momentum reflects a bearish market attitude, as the 14-day Relative Strength Index (RSI) stays below the 50 level.
