EURUSD tests key support

Main currency pair tests key support zone at 1.2060

USD strengthened against major peers on Wednesday morning, triggering a downward move on EURUSD. The main currency pair has once again tested the key support area, marked with previous price reactions as well as the lower limit of the upward channel. In case bulls managed to defend this area, another upward impulse may be launched. On the other hand, breaking below the zone could result in a deeper downward move. In such a scenario, the first support to watch can be found at 1.2030, where the lower limit of the Overbalance structure can be found. Elevated volatility on EURUSD is expected this evening as FOMC will announce a monetary policy decision at 7:30 pm BST. Even more volatile moves may occur at 7:30 pm BST as Fed Chair Powell will hold a post-meeting press conference.