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The EUR/USD pair increased in the short term as the Dollar Index has dropped. There is a strong negative correlation between these two. The price action has developed a minor up channel. This formation is seen as a potential continuation pattern. The bias is bearish, so a further drop is in the cards.
Still, the fundamentals will move the pair today. The FOMC is seen as a high-impact event. The greenback depreciates, even though the Existing Home Sales indicator was reported at 5.88M above 5.87M expected.
You should be careful later as the FOMC Economic Outlook, FOMC Statement, and the FOMC Press Conference could change the sentiment. As you already know, the FED is expected to keep its monetary policy unchanged in today's meeting. A hawkish tone could boost the DXY and the USD.
EUR/USD has increased but it continues to stay below the warning line (wl1), under the 1.1765 pivot point, and way under the downtrend line.
As I've told you earlier, the pair is trading within a minor up channel. A valid breakdown from this pattern may activate and confirm a further drop.
Personally, I believe that EUR/USD could extend its drop if it drops and closes below the channel's support and below 1.1714 low. The weekly S1 (1.1684) and the 1.1663 are seen as downward targets.
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