EUR/USD Price Analysis: Retraces recent gains ahead of Fed decision, hovers below 1.0800

EUR/USD halts its two-day winning streak ahead of monetary decisions from both economies.
Technical indicators suggest a potential revisit to the weekly low at 1.0741.
A breakthrough above the 1.0800 level could lead the pair to reach the 14-day EMA at 1.0816.

Akhtar Faruqui FXStreet

EUR/USD halts to continue a two-day winning streak ahead of the monetary policy decisions from the United States (US) and the Eurozone on Wednesday and Thursday, respectively. The EUR/USD pair trades lower around 1.0790 during the Asian session on Wednesday.

The technical signals for the EUR/USD pair favor the ongoing downward movement. With the 14-day Relative Strength Index (RSI) staying below the 50 mark, there's a bearish sentiment suggesting a potential revisit to the major support at the 1.0750 level before the weekly low at 1.0741.

If the pair manages to break below the latter, it could put pressure on the EUR/USD pair to navigate the four-week low at the 1.0723 level followed by the psychological support region around the 1.0700 level.

Additionally, the Moving Average Convergence Divergence (MACD) suggests the weakening of the overall positive momentum as the MACD line is positioned above the centerline but exhibits divergence below the signal line. This shows a potential shift in the direction of the trend.

On the upside, the EUR/USD pair could find a key resistance around the psychological region at the 1.0800 level. A breakthrough above the barrier could reinforce the strength of the EUR/USD pair to explore the area around the 14-day Exponential Moving Average (EMA) at 1.0816 followed by the 38.2% Fibonacci retracement at 1.0833. If the EUR/USD pair surpasses these levels, the major level at 1.0850 could be tested as a further barrier.

EUR/USD: Daily Chart

EUR/USD: Additional levels to watch

Overview
Today last price	1.0789
Today Daily Change	-0.0008
Today Daily Change %	-0.07
Today daily open	1.0797

Trends
Daily SMA20	1.0869
Daily SMA50	1.0717
Daily SMA100	1.0758
Daily SMA200	1.0825

Levels
Previous Daily High	1.0828
Previous Daily Low	1.076
Previous Weekly High	1.0895
Previous Weekly Low	1.0724
Previous Monthly High	1.1017
Previous Monthly Low	1.0517
Daily Fibonacci 38.2%	1.0802
Daily Fibonacci 61.8%	1.0786
Daily Pivot Point S1	1.0762
Daily Pivot Point S2	1.0727
Daily Pivot Point S3	1.0694
Daily Pivot Point R1	1.083
Daily Pivot Point R2	1.0863
Daily Pivot Point R3	1.0899

Author

Akhtar Faruqui

FXStreet

Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.

AUD/USD remains confined in a range above 0.7100

AUD/USD extends its consolidative price move above 0.7100 through the Asian session on Tuesday, shrugging off hawkish comments from RBA Assistant Governor Sarah Hunter as traders keenly await the crucial Trump-Xi summit later this week. Meanwhile, escalating tensions in the Middle East and the Fed's hawkish outlook remain supportive of the bullish US Dollar undertone, capping spot prices.

USD/JPY bulls seem cautious below 157.50 as JPY intervention risks loom

USD/JPY consolidates below mid-157.00s during the Asian session on Tuesday as intervention fears help limit losses for the Japanese Yen. However, the BoJ's dovish rate hike to a 31-year high keeps JPY bulls on the back foot. At the same time, the US Dollar retains its bullish undertone amid the Fed's hawkish outlook and escalating Middle East tensions, acting as a tailwind for the pair.

Gold benefits from falling US bond yields; remains below $4,400 amid bullish USD

Gold regains positive traction during the Asian session on Tuesday, though it lacks bullish conviction and remains below $4,400. Falling oil prices ease inflation fears, dragging US bond yields lower and supporting the non-yielding yellow metal. Meanwhile, the Fed's hawkish stance, along with escalating Middle East tensions, keeps the US Dollar near its highest level since late July and acts as a headwind for the bullion.

Ethereum rallies above $2,700 as investors shrug off bearish sentiment

Ethereum (ETH) climbed above $2,700 on Monday after investors defended the realized price level despite negative sentiment over the Clarity Act's failure and the Federal Reserve rate hike. After the Clarity Act failed to advance in the Senate, ETH dipped below $2,400 last week. But right below that price is the top altcoin's realized price, or average on-chain cost basis, at $2,310.

The week ahead: Fuel prices in focus as we lead up to key eco releases

Financial markets are in a strange position as we move to the final weeks of Q3, uncertainty and volatility continue to grip markets, but the oil price is falling; and European and US stocks are poised to open higher later on Monday. Market stresses are concentrated in sovereign bonds, and European and US yields had another scare late on Friday, and moved higher.

BoJ Recap: Not as hawkish as expected

The Bank of Japan (BoJ) raised its short-term interest-rate target to 1.25% from 1.00% in a 7-2 vote, marking another step in the normalisation of monetary policy and widely matching what everyone has been expecting for weeks.