FX.co ★ Technical review for EUR/USD: euro may extend its decline

EUR/USD is under pressure because Fed Chairman Jerome Powell hinted in his speech yesterday that the US central bank could raise rates by 0.50% on May 4. His statement also caused a sharp sell off in stock markets, prompted an increase in the yield of treasuries and strong demand for dollar. Most likely, this dynamic will continue until the Fed meeting in May.

Technical picture:

The quote is below the middle line of the Bollinger indicator, below SMA 5 and SMA 14, which crossed and gives a signal to sell. The relative strength index (RSI) is below 50% and is also signalling the same thing. Meanwhile, the stochastic indicator is in the oversold zone.

Possible dynamics:

If EUR/USD consolidates below 1.0820, the quote will dip lower, most probably to 1.0760.