The EUR/USD pair shows a moderate decline, developing a weak "bearish" momentum formed the day before. The instrument is testing 1.0740 for a breakdown, while investors are expecting new drivers for the movement of quotes.

A fall is possible.

On the daily chart, the upward wave B, within which the first wave 1 of (А) of B ended, and a downward correction develops as the second wave 2 of (А) of B. Now, the wave c of 2 is forming, within which the third wave of the lower level (iii) of c is developing. If the assumption is correct, the EUR/USD pair will fall to the area of 1.0410–1.0212. In this scenario, critical stop loss level is 1.0977.

During the Asian session, the EUR/USD pair consolidated near 1.0765 against an active decline in the American dollar and the expectation of the publication of EU macroeconomic statistics.

During the Asian session, the EUR/USD pair rose to 1.0740 against the US Fed’s decision on monetary policy and accelerating EU inflation.

The EUR/USD pair is moving within a long-term downward channel: in the middle of the month, the price reached its lower limit of 1.0600 and corrected to the middle line of Bollinger Bands 1.0725, where it is now trading.