EUR/USD has now reached the key support level. The forex pair did actually dip below it earlier today but has now bounced back.

Taking a look at the EUR/USD as the forex pair has now reached a key support zone. The euro is currently trading at €1.0654 against the dollar, but it has approached the key support level of €1.0635. In today’s session earlier in the day, it actually tested and broke below it, reaching a low of €1.0616. However, the price has now bounced back into the descending triangle area. The support of €1.0635 dates back to May, which so far is the last higher low of the longer-term bullish run since the start of the year. If the price of the FX pair closes below this support level then this may be an indication that more downside is likely, adding more pressure on the Euro. Yesterday’s hawkish comments from the Fed continue to strengthen the dollar, which is hammering other major currencies. Additionally, as this is a key support level we may see higher volatility going into the end of the week. Looking at the technical indicators, MACD has turned flat but the RSI is still very much negative as it reads 35.