EUR/USD Price Analysis: Hovers Above The 1.0550 Key Level Ahead Of Fed Decision -

EUR/USD Price Analysis: Hovers Above The 1.0550 Key Level Ahead Of Fed Decision

Nov 01, 2023Jeremy ParkinsonFinance0

Image Source: Pixabay

EUR/USD could revisit the previous week’s low at 1.0521 due to facing pressure.

Any dovish remarks post-Fed decision could uplift the pair toward a 23.6% Fibonacci retracement level at 1.0648.

RSI indicates a bias towards a weaker market sentiment.

EUR/USD consolidates ahead of the Federal Open Market Committee (FOMC) policy decision with the expectation of maintaining the current interest rate at 5.5% in November’s meeting. The pair trades lower near 1.0570 during the Asian session on Wednesday.The Eurozone Harmonised Index of Consumer Prices (HICP) exhibited a significant slowdown in a report released on Tuesday, dropping from an annual pace of 4.3% to 2.9% in October. This notable deceleration in consumer prices aligns with market expectations that the European Central Bank (ECB) is unlikely to pursue further interest rate hikes. Additionally, the looming risks of a recession may persist in undermining the EUR/USD pair.The EUR/USD pair could find support around the psychological level of 1.0550, followed by the previous week’s low at 1.0521. If the pair convincingly breaches the latter, it could pave the way for further downside movement towards the critical level around 1.0500.The Moving Average Convergence Divergence (MACD) line positions below the centerline but above the signal line implying a potential shift in momentum. This nuanced market sentiment suggests a mix of factors indicating a potential change in the prevailing trend.Investors will closely watch the Federal Open Market Committee’s (FOMC) post-meeting communication to gauge the potential path of interest rates. Any dovish remarks could turn the pair to the upside toward the key barrier around the 23.6% Fibonacci retracement level at 1.0648. The further obstacles are presented by the 50-day Exponential Moving Average (EMA) at 1.0650.A successful breach above the mentioned resistance levels could potentially invigorate the EUR/USD pair to revisit October’s high at the 1.0694 level.However, the EUR/USD pair seems to be facing restrained momentum as the 14-day Relative Strength Index (RSI) lies below the 50 level, suggesting bearish momentum and reflecting a bias towards a weaker market sentiment.EUR/USD: Daily Chart EUR/USD: MORE TECHNICAL LEVELS TO WATCH

OVERVIEW Today last price 1.057 Today Daily Change -0.0006 Today Daily Change % -0.06 Today daily open 1.0576

TRENDS Daily SMA20 1.0573 Daily SMA50 1.0649 Daily SMA100 1.0815 Daily SMA200 1.0811

LEVELS Previous Daily High 1.0675 Previous Daily Low 1.0558 Previous Weekly High 1.0695 Previous Weekly Low 1.0522 Previous Monthly High 1.0695 Previous Monthly Low 1.0448 Daily Fibonacci 38.2% 1.0602 Daily Fibonacci 61.8% 1.063 Daily Pivot Point S1 1.053 Daily Pivot Point S2 1.0486 Daily Pivot Point S3 1.0413 Daily Pivot Point R1 1.0648 Daily Pivot Point R2 1.072 Daily Pivot Point R3 1.0765

More By This Author:USD/JPY Retreats From The Yearly High, Hovers Above 151.00 GBP/USD Fails To Hold Above The 20-day SMA, Eyes On BoE And Fed Silver Price Analysis: XAG/USD Price Retreats Below $23.00 As Double-Top Looms