EURUSD at key level going into US interest rate decision.

Heading into significant US data this week, the EURUSD finds itself once again at a compelling technical level. Throughout the majority of 2023, it successfully maintained its position within an ascending channel. However, in the early part of September, the price experienced a decline. This downturn was concurrent with the price also dipping below the 200 SMA, which has provided support on numerous occasions throughout 2023 to date.

After bouncing nicely on the first horizontal support zone, we saw this level fail last week. A couple of days of positive trading sees price back up at this key zone, where we will be waiting to see if that horizontal support flips to resistance to bounce price back south and continue the downward trend. With the US interest rate decision out on Wednesday, we could be in for some volatility on this pair.

The market is currently predicting a 99% change of a continued pause, keeping rates at 5.5%. Any deviation from this is likely to cause some big movements in the USD, and this pair.

With mixed inflation data out lately and oil prices soaring, this will be an important decision for the US Fed. If the 1% probability occurs and the Fed hikes rate, this will likely see strength form in the dollar.

Considering that the price currently situates at crucial technical levels in anticipation of important economic data, EURUSD might see an intriguing trading period in the upcoming week.