Yesterday, the EURUSD experienced a significant increase, reaching a high of 1.07879. However, it fell short of the swing area between 1.0799 and 1.0805. The currency pair then corrected lower but found support from buyers before reaching the swing area between 1.0744 and 1.0752 (as discussed in yesterday's post). Buyers entered the market ahead of this area, resulting in a closing price of 1.0768.
During today's trading session, the EURUSD dipped towards the high from March 15 at 1.07592 in the early European session. Nevertheless, support buyers emerged (partly due to stronger UK inflation ), driving the price upwards. The currency pair's high reached 1.07995, falling within the swing area of 1.0799 – 1.0805. In the last hour or so, the price has shifted back down towards the 50% midpoint of the move from the February 2 high (the year's high) to the March 15 low (the year's low), which is at 1.07738.
Both yesterday and today, support buyers have defended key levels, while sellers have entered the market at resistance targets. Moving forward, and as the FOMC rate decision approaches, a drop below 1.0744 would shift short-term bias towards the downside, with a stronger support target between 1.0690 and 1.0704.
On the top side, getting above 1.0805 today will open the bullish door further and have traders eyeing a run toward the 61.8% retracement of the 2023 trading range at 1.08348.
