Following up our yesterday’s blogpost, EURUSD still consolidates on the marked support zone (S1) that Fibonacci levels are forming. Today we are not expecting major news, while later FOMC member Kashkari speaks but a decisive pair movement is rather unlike.
Reviewing the daily chart, we added the oversold RSI which usually indicates a temporary bottom. However, RSI has remained excessively below 30 level which is not positive.
Daily
Heading to the hourly chart, the pair is forming a short-term wedge (W1) while RSI is flatting between 35 to 55 levels. MACD still gives positive divergence and indicates temporary bearish exhaustion. The price appears to be violating the falling channel (C1) but it’s not a convincing breakout. It’s obvious that the market anticipates the next catalyst. Our yesterday’s scenarios are still valid.
Hourly
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