EUR/USD Pullback Accelerates Amid Fed Concerns, Support Zone in Sight
The EUR/USD currency pair has seen a recent pullback after its 3.1% rally from the July low stalled at a major resistance zone.
This move has left the broader recovery intact, but the pair is now approaching an important technical barrier that may determine whether this correction remains healthy or develops into a more significant reversal in September.
The decline accelerated today on the heels of Fed Chair Warsh's remarks at the Jackson Hole World Economic Symposium, with the Euro poised to mark its largest single-day loss since June.
The focus is now on a reaction off this pivotal zone, which lies near-term uptrend support. A break below the median line yesterday gathered pace on the back of Warsh's comments, and the decline is now approaching confluent support at 1.1564/78.