FX.co ★ EURUSD weakness before the FOMC.

Blue rectangle- support (broken)

EURUSD has broken below short-term support of 0.9950. Price is now trading around 0.9915 with price having broken the horizontal support that was respected during the previous sessions. As we mentioned in yesterday's analysis if support at 0.9950 were to break, it would provide a new bearish signal. However with the FOMC later tonight, this could be traders front running the market. Medium and short-term trend remain bearish. Next key support level is at 0.9865 and below that we can see EURUSD reaching 0.97. Volatility is expected to rise tonight after the FOMC announcement, specially in case the FED does not raise the rates as much as it is expected.