- The EUR/USD pair looks set to hit new lows as the dollar rises ahead of the FOMC.
- The lower midline is seen as a potential target.
- US data could have an impact later today.
EUR/USD fell, trading at 1.0899 at press time, well below yesterday’s high of 1.0963. The decline is attributed to a stronger US dollar.
–Are you interested in learning more about forex bonuses? Check out our detailed guide-
The dollar strengthened after Canadian inflation data came out. CPI and Core CPI showed higher inflation than last month’s reading. Although US existing home sales were not as good as expected, the US dollar remains strong after the minutes of the FOMC meeting. The Fed said they are keeping monetary policy unchanged and will not change interest rates.
Today, US data could move the market. Jobless claims may fall from 231K to 226K last week. Also, the revised UoM Consumer Sentiment could increase from 60.4 to 61.1 points. Also, durable goods orders may show a decline of 3.2% after a rise of 4.6% last time. Basic durable goods orders could show a 0.2% increase.
On the other hand, the Eurozone will publish the consumer confidence indicator, which could remain at -18 points.
Technical analysis of EUR/USD price: Lower leg
The currency pair failed to retest the upper middle line of the rising villa (uml), signaling exhausted buyers. The pair has now fallen below the midline (ml), which represents dynamic support.
–Are you interested in learning more about crypto signals? Check out our detailed guide-
After the sell-off, the price could retest the middle line (ml) before extending its sell-off. The lower barrier has turned into an upward barrier, so false breakouts can lead to a downward continuation. The lower median line (lml) and the weekly pivot point at 1.0830 represent key targets if the rate continues to decline.
Do you want to trade Forex now? Invest in eToro!
67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing money.
