The drop yesterday following Fed chair Powell's hawkish remarks is putting the late February lows in focus now but the key technical level to watch is arguably the 100-day moving average (red line), seen at 1.0517 currently. That will add to a layer of defense for the pair alongside the 1.0500 mark, which helped to stall the early January push lower.
A break below the levels highlighted will provide sellers with renewed conviction, in trying to chase a further move to the downside.
The next key level to watch then will be the 38.2 Fib retracement level of the swing higher since late September and the January low, at the 1.0460-80 region. But beyond that, it could be a quick trip towards the 200-day moving average (blue line) next, seen at 1.0325 currently.
For now, the pair is keeping steadier on the day as the dollar checks its gains from yesterday. But just be mindful, there will be plenty of landmines for traders to navigate through in the coming two weeks all before the FOMC meeting and they all have the potential to induce further volatility in dollar pairs.
