EURUSD on the hourly chart

The EURUSD has seen a move to the upside and back down after the FOMC rate decision. The high price extended to 1.0427. The low price moved to 1.0358.

Of interest at that low is that the price stayed above the swing lows from May 12 and May 13 at 1.0353 and 1.03485 respectively. The inability to move below that low is giving the dip buyers some comfort. The prices now trading at 1.0406.

On the topside, there is resistance at 1.04189.

Move above and we could see a squeeze higher with 1.04578, 1.04709 and the falling 100 hour moving average 1.04865 as the next progressive targets.

Stay below the 1.04189 level, and move back below 1.0388 – 1.038968, and we can't rule out a retest of the lows for the year. Breaking below would take the euro to the lowest level since 2002 nearly 20 years ago. Making the 20 year lows is a big step. As a result, there is some buyers against that level. I would expect stops on a break below.

So far there is up and down volatility as the market awaits the Powell testimony.