EUR/USD Price Analysis: After a brief wobble normal service is resumed

EUR/USD 30-minute chart

EUR/USD has struggled for most of the session and recently the price has printed above the previous wave high. After yesterday's FOMC rate decision and press conference the market continued in its path of selling the dollar but overnight and in the EU session some of those moves had been reversed as the greenback recovered some of the losses against all but the pound (GBP). 

The chart below shows a consolidation pattern but the most recent price waves have been making higher lows. This is reflected by the blue trendline at the bottom of the consolidation structure. Now the red resistance zone seems to be under threat and adding to this for a brief moment the price spiked through the previous wave high of 1.1806. If the bulls cannot sustain a move beyond the 1.18 figure the next support is at the red line near 1,1770. A reversal could be confirmed if the whole pattern is broken to the downside.

The indicators have turned back to the bullish side after a brief move lower. The Relative Strength Index now has some more room to move into the overbought area. The MACD histogram is still green and the signal lines are nicely back above the mid-point. 

Overall, this is an uptrend but the strength of the trend is now being called into question. No doubt the US close will be important as we could see if the test of the old highs are rejected and it could be an important signal. 

Additional levels