At yesterday's FOMC meeting, the Federal Reserve cut the rate by the anticipated 0.25%. However, the FOMC projected only two rate cuts for the upcoming year, compared to the market's expectation of three. This led the euro to fall by 139 pips. Yet, the most notable event of the day was the 2.95% drop in the S&P 500. The index erased three weeks of gains in a single day. The technical picture indicates a crisis scenario, as we mentioned last week in the analysis titled "The U.S. Stock Market Ends the 'Trump Rally' on December 10", suggesting further developments in this direction.
On the daily chart, the euro has reached the 1.0350 target level. As of Thursday morning, the price is undergoing a slight correction. After this correction, we expect the price to move below this level and continue its decline toward the next target at 1.0250. If a divergence forms at this level, a deeper correction could follow. If not, further decline toward 1.0135 is possible.
On the H4 chart, the Marlin oscillator begins easing out of the oversold zone, signaling a minor recovery. Once the market stabilizes, we anticipate another attempt to break the 1.0350 support, followed by a move toward 1.0250.
The material has been provided by InstaForex Company - www.instaforex.com
On the daily chart, the euro has reached the 1.0350 target level. As of Thursday morning, the price is undergoing a slight correction. After this correction, we expect the price to move below this level and continue its decline toward the next target at 1.0250. If a divergence forms at this level, a deeper correction could follow. If not, further decline toward 1.0135 is possible.
On the H4 chart, the Marlin oscillator begins easing out of the oversold zone, signaling a minor recovery. Once the market stabilizes, we anticipate another attempt to break the 1.0350 support, followed by a move toward 1.0250.
The material has been provided by InstaForex Company - www.instaforex.com
