Bearish EUR/USD 26.01.2023The EUR/USD pair has been trading in a tight range, with the bulls wanting the channel to continue but under a lot of selling pressure. The pair has been dropping since the start of the day and is currently trading around 1.09112. The market sentiment is bearish due to the mixed economic news and meetings that are scheduled today.
The market is currently struggling to find a foothold with the US Dollar recovering from its earlier weakness. The European Central Bank (ECB) held its monetary policy meeting yesterday, but the meeting failed to provide any clear guidance. The Bank of England (BoE) is also due to meet today, and the outcome of this meeting could have a significant impact on the EUR/USD pair.
The pair is currently heading towards the 1.08750 level, which is the bottom line of the rising trend channel. If the pair continues its downward trajectory, it could test the support level of 1.08750. The risk-averse market atmosphere is likely to keep the US Dollar in demand and make it difficult for the EUR/USD pair to recover.
