On the daily chart below for EURUSD, we can see that the price keeps on trying to breakout the 1.1033 high, but as of now all the attempts failed. The red long period moving average is offering support for the buyers, but the sellers above the 1.1033 high are very strong and if they succeed to make a new lower low, we may have a big double top pattern.

Yesterday, the price was about to break below the moving average as the US ISM Manufacturing PMI beat expectations the previous day, but then the US Job Openings missed expectations and the market started to focus again on the weakening labour market and rate cuts from the Fed.

EURUSD technical analysis

On the 4 hour chart below, we can see that the price has been trending upwards within a channel and that the whole move up was diverging with the MACD. Generally, this is a sign of weakening momentum and it’s often followed by pullbacks or reversals. The price has briefly broken out of the channel and if it makes a new lower low, then the target should be the bottom of the channel at 1.0750. Today is a big day as we have the US ISM Services PMI and the FOMC Policy Announcement.

On the 1 hour chart below, we can see that the price action is mostly rangebound between the 1.0960 and 1.1060 levels. There’s lots of uncertainty in the market at the moment and it will need a clear catalyst to break out on either side. For the buyers a clear break above the 1.1060 level supported by a fundamental catalyst should give the buyers control and lead to new higher highs. For the sellers, on the other hand, a break below the 1.0960 level should give the conviction to target the 1.0750 level.