Eurusd Drops Before Fomc Minutes

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Eurusd Drops Before Fomc Minutes

Eur/Usd Drops

EUR/USD continues to lose ground and is now near the 1.0950 level on Wednesday. The Euro is under pressure after the US dollar has started to gain strength, and everyone is now waiting for the Fed's meeting minutes for September's meeting.

The 1.0950 is the weekly low for the EUR/USD and shows that the USD remains strong ahead of the FOMC meeting minutes. On the daily chart, a rising trend line is seen from June, which will likely offer resistance.

Eur/Usd Faces Resistance At 1.1000

For now, that trendline is near 1.1000, which means that there will be a strong resistance level if the EUR/USD rises. A look at the 20 SMA shows that it is moving lower and is almost 150 pips below the current price levels.

As for the 100 and 200 SMA lines, they remain unchanged but are also below the current price level. Similarly, all the top technical indicators are also moving to negative levels.

In the short term, the EUR/USD is at risk of more downside, and that is confirmed by the H4 chart as well. The 20 SMA seems to be acting as dynamic resistance on the intraday chart and is near 1.0970. Also, the bigger SMAs show that the selling interest remains strong, which is bad news for the EUR.

The support levels for the EUR/USD include 1.0920 and then 1.0885. Any more selling will send us towards the next support at 1.0840.

The resistance levels for the EUR/USD are seen around 1.0970, followed by 1.1000. After that, the next level that could hold the advance of the EUR/USD is 1.1045.

Over all, EUR/USD is vulnerable below the 1.1000 and is trading in a tight range. This is only natural, given that markets are waiting for more clarity from the FOMC meeting minutes.

The dominant theme is the strength of the US Dollar, which is now trending higher against its major rivals. However, that could change if the FOMC minutes fail to press the markets.

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