EUR/USD gained 50 pips during yesterday's trading session and has been negative 40 pips for the day. The pair is supported by the medium trend line in the hourly chart and is taking shape to form a wedge, a break below is incomplete wedge will push the pair towards 1.1230 or will range between the channel.
The four hour chart can shine a bit more light on the direction, with an increased bearish power and a sharp decline in the 20 MA has suggested that the pair will continue to decline until the Fed's meeting scheduled this week. A break of the 50% fib and 1.12084 will quickly accelerate the price towards the 61% fib at 1.11205
This analysis can be confirmed in the daily chart, when the price failed to hold its territory within the ascending channel and fell behind the walls. The pair was unable to overcome the 1.1282 resistance and is heading towards 1.1218 (38.2% fib) on the daily chart. The price may range between this support and resistance level, if the price breaks below this 1.1218 then the acceleration seen on the 4 hour chart will be true.
The weekly candle is showing a quarter bearish head and the immediate hurdle is the current price, we can see that the price may extend towards the ascending trend line before a bounce or a continuation.
For more daily market insights, visit NoaFX Knowledge Center.