EUR/USD returns to crucial support level
EUR/USD has sold-off sharply following a hawkish Federal Reserve dot plot yesterday. This has brought the pair back down towards the $1.0462 support level. That represents the March 2015 low, which if broken would set a new 14-year low for the pair.
Given the wider perspective, the breakout from this two-year range is expected to occur to the downside. However, until we break below $1.0462, there is always the potential for a bounce.
As such, the ability or inability to break and hold below $1.0462 will be the driver of price action today. A strong break lower could set us up for a sell-off lasting weeks or even months.