Technical analysis
The EMA(100) is above the EMA(50), which is beneficial for bears
The RSI is below 50
The Stochastics is in an overbought zone, pointing to a possible downtrend.
What the possible outcomes are
The U.S. dollar moved to new heights after the FOMC minutes yesterday. EURUSD dropped to the new year lows of 1.16644 but rebounded to the current level of 1.16940.
In our most likely scenario, the pair may experience a downwards correction towards the first support level of 1.16833.
If the price passes the first support level, we can expect a continued downtrend towards the second support level of 1.16676.
Conversely, it’s possible to see the pair rise towards the first resistance level of 1.17130.
If the pair surpasses the first resistance level, we should expect a continued surge towards the second resistance level of 1.17428.
Key levels
Support 1.16833 1.16676
Resistance 1.17130 1.17428
