Red lines- bearish channel
Blue line- bullish RSI divergence
EURUSD is trading just above 0.98. Yesterday EURUSD was trading around 0.9980 and parity. Before the FOMC price broke below support of 0.9950 and tested the 0.99-0.9880 level. After the FOMC we saw EURUSD spike upwards and downwards towards 0.98. As expected volatility increased and price action was erratic. Today price bounces higher and this could continue until the end of the week. Profit taking by bears is the most probable scenario. Medium-term trend remains bearish as price continues making lower lows and lower highs inside the bearish channel. The RSI bullish divergence justifies a trend change, but so far we have no such signs.
