FX.co ★ Moon-Night | EUR/USD

After showing a peak at 1.0753, the EURUSD pair weakened with strong momentum and significantly retreated from one border of the channel to another at the level of 1.0675. Such a violent drop is surprising for several participants since the pair looked self-confidently growing for some days before that. The price didn't test this level, yet if the selling pressure will still dominate the market, it could be next week. The 1.0675 support is also very close by, and it forms part of a wider, significant demand area. These all make it a critical point of interest in the near term. However, chances are that the current uptrend might continue despite the setback since the price has reached the aforementioned support at 1.0677. This level encapsulates a demand zone, which could make the pair's next try at moving into the target range of 1.0800-1.0810, for which a forecast has been making the rounds for close to three weeks, possible once again. Besides that, the ability of the pair to remain around this critical support level may serve as an indication of how bullish traders are.

The forthcoming week is expected to remain high on heavyweight news, with the bulk of the attention on the FOMC meeting and labor market-related data. All these are likely to result in great volatility, given their history of hugely impacting global financial markets. Technically, the outlook remains constructive within the channel oriented to the north. However, in case of a breakdown of this channel, it will be necessary to revisit the market assessment. Traders and investors are recommended to follow these developments and news with utmost caution so they may appropriately navigate any trading opportunity in this dynamic market setting. It will be key to staying informed and adaptable to leverage any change in momentum and avert potential losses.