EUR/USD Forecast: Turning Bearish, Could Slide Towards 1.1720

The EUR/USD pair once again failed to hold early gains beyond the 1.20 key psychological mark and broke below the 1.1900 handle after the Fed kept interest rate projections unchanged, suggesting one more rate hike in 2017. All the aspects of the latest FOMC meeting were inclined towards a more hawkish stance and eased pressure on the US Dollar.

In absence of any major market moving economic releases from the Eurozone, broader market sentiment around the greenback might turn out to be an exclusive driver of the pair's momentum through the European trading session. Later during the North American session, the usual release of weekly jobless claims and Philly Fed manufacturing index from the US should be looked upon to grab some short-term trading opportunities.

Technically, the pair is now testing a short-term ascending trend-channel support. Hence, some follow-through selling pressure, leading to a subsequent break below the four-week old trading range support around 1.1820 level, would confirm a bearish break and turn the pair vulnerable to extend its corrective slide in the near-term. Below the mentioned support levels, the pair is likely to fall towards its next major support near the 1.1720 horizontal level.

On the flip side, any up-move beyond the 1.1900 handle might now confront fresh supply near the 1.1920 horizontal resistance, above which the pair could make a fresh attempt towards reclaiming the 1.20 handle.