On 10 March, a review of the EUR/USD chart revealed:
→ the long-term downward channel remains intact and provides context for current price action;
→ the previous sequence of lower lows (A–H) was broken by the emergence of a higher peak, I, with resistance likely near 1.1680.
At peak I, bullish momentum waned: after a brief consolidation around the channel’s median, bears regained control, pushing the pair to a fresh yearly low, driven by prevailing macroeconomic pressures.
Looking ahead, the Fed’s interest rate decision tomorrow and ECB commentary the following day could significantly influence market sentiment. Price action suggests that bulls may attempt to regain the upper hand in response.
Technical Review of EUR/USD
Key observations include:
→ Monday’s opening saw a strong recovery, largely offsetting the previous week’s bearish move.
→ Last week’s downward trendline has been broken, with the pair holding above the breakout level at 1.14560.
→ The currency is rebounding from oversold conditions near the lower boundary of the channel, with the psychological level 1.1500 likely to act as support.
Traders should remain alert to scenarios where early-week bullish activity could be reinforced by upcoming central bank announcements.
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