FBS: outlook for EUR/USD

EUR/USD is consolidating above $1.3500 after a big move it made on Wednesday on the Fed’s inaction. Euro made a new high yesterday, though the daily candle was small. Euro’s oversold in the short term, so we see a high probability of some correction, to the middle of the bid Wednesday’s candle, August high and Kijun-sen ($1.3452/1.3428). Then the bulls may initiate another attempt to the upside, to $1.3580. Note, however, that there are risks associated with German elections taking place this weekend and potential dovish comments from the ECB. This will be a thing to consider before going long on the pair.

Chart. H4 EUR/USD

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