The euro has been poised for a decline since Tuesday; however, the growth of the stock market has kept European currencies in a sideways trend. We do not anticipate a sustained trend in the stock indices. The upcoming Federal Reserve meeting on January 29 may temper the excessive optimism among investors. It is evident that the euro is also awaiting this meeting of the U.S. central bank.

On the daily timeframe, the MACD line is approaching the support level of 1.0350. The price is currently trading comfortably within the range of 1.0350 to 1.0458. A break and consolidation beyond either boundary of this range will indicate further movement—either an increase toward 1.0598 or a decline to 1.0135. The primary scenario remains bearish.

On the four-hour chart, the support level at 1.0350 is reinforced by the MACD line. Thus, if the price breaks below this level, it will signal a strong likelihood of further declines. Additionally, the Marlin oscillator is moving into bearish trend territory, which could set the stage for a downward price breakout.