EURUSD fell last week as it was technically overbought and also due to strong resistance near the top of a 40-month falling channel.
As it seems right now, the bearish trend is building up well and there's no real support at the current price, thus the price is most likely to fall further this week.
During Draghi's final speech as the ECB President, he had reaffirmed the intention of keeping interest rate low or even lower if need be, and that the bond purchase program is going to relaunch in November.
On the other hand, it also seems that the Fed is very likely to cut rate in the upcoming FOMC meeting.
In conclusion, the EURUSD is most likely to extend its drop but will find strong support at the 1.10 region, just before and/or after FOMC meeting in the later week.
As it seems right now, the bearish trend is building up well and there's no real support at the current price, thus the price is most likely to fall further this week.
During Draghi's final speech as the ECB President, he had reaffirmed the intention of keeping interest rate low or even lower if need be, and that the bond purchase program is going to relaunch in November.
On the other hand, it also seems that the Fed is very likely to cut rate in the upcoming FOMC meeting.
In conclusion, the EURUSD is most likely to extend its drop but will find strong support at the 1.10 region, just before and/or after FOMC meeting in the later week.
