Based on the EUR/USD chart, the market is preparing for an interesting adjustment as a butterfly pattern has emerged.
Key support levels at 1.09053 and 1.07810 suggest that prices could continue rising toward the strong resistance at 1.10007.
However, this is a sensitive area, and if it fails to break through, a sharp drop back to lower support levels may occur.
Traders should note that the EMA is acting as significant dynamic support, and a breakout below this level could open the door to a deeper decline. The support area near 1.07810 could present attractive buying opportunities if the price recovers from this level.
The ECB's interest rate decision, expected on October 17, could involve a cut of up to 0.50% if the Eurozone's economic data weakens. This is attracting significant attention from EUR/USD traders, as it could trigger considerable market volatility.