EUR/USD Oscillates Ahead of US Federal Reserve Rate Decision: A Technical Insight

Posted Wednesday, September 20, 2023 by
Arslan Butt • 1 min read

During Wednesday’s Asian trading session, the EUR/USD pair edges towards recovery, settling around the 1.0680 mark, having retreated from prior losses. Market trepidation persists, largely attributed to anticipation surrounding the imminent US Federal Reserve (Fed) interest rate announcement, expected in the forthcoming North American session.

Crucial support for EUR/USD emerges near the psychological threshold of 1.0650, succeeded closely by the preceding week’s nadir at 1.0631. Given a persistent bearish inclination, the pair might gravitate towards the next significant support, set at the 1.0600 juncture.

Conversely, potential resistance looms for the pair at the 1.0700 psychological landmark. Beyond this, the 12-day Exponential Moving Average (EMA) is pinpointed at 1.0713. A decisive ascent past this EMA might pave the way for the currency pair to probe the vicinity of the 21-day EMA, standing at 1.0754, congruent with the 23.6% Fibonacci retracement at the 1.0783 mark.

Technically, the Moving Average Convergence Divergence (MACD) line is situated below the midpoint yet surpasses the signal line. This arrangement suggests the shorter-term moving average is trending upward relative to its longer-term counterpart, hinting at potential bullish momentum.

Nevertheless, the EUR/USD remains under selling pressure, as corroborated by the 14-day Relative Strength Index (RSI) positioning below the pivotal 50 level.

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