The EUR/USD saw a massive fall and reversed on Wednesday’s trading session last week from the ongoing bullish trend after Fed Chair Janet Yellen indicated that the bank could begin to raise interest rates about six months after its bond-buying program winds up, which is expected to happen this fall.
The Fed also reduced its monthly bond purchases by an additional $10 billion to $55 billion at the conclusion of its two-day policy meeting, and said there was “underlying strength in the broader economy.”
Weekly bias remains strongly on the downside as a fresh cross of 21/55 EMA shows more decline is expected. Oscillators such as the Stochastic, MACD and RSI also show more strength to the downside is expected this week. A break of support 1.37483 could see price plumage down to 1.36400 round number psychological zones.
Key economic indicators to watch out for in the coming week are USD CB Consumer Confidence, New Home Sales, and EUR German Ifo Business Climate.