After a sharp rally yesterday eur/usd support is tested today. The pair retraced most of its’ gains yesterday after a few hours of rally above key 1.1500 level. However, you can also see that it came back to the area twice (yesterday and today) and by its’ price action we may guess that 1.1500 will hold today and presents us with a good opportunity to buy Euro and sell US dollars.
You can spot that at 08:02 GMT the pair made its’ lowest point for the day by breaking Asian session low. Now, after the low was made it bounced pretty sharply off support and is currently sits at 1.1550. Stronger resistance should come at around even number 1.1600, which also coincides with Asian session high. However, the pair might also go to yesterday’s high 1.1711. I expect the latter to hold today.
The trend is up and one should wait for possibilities to buy on dips.
A fundamental event that might create sharp volatility is US Consumer Confidence release that is to come out at 14:00 GMT. So, nothing fundamental till US session begins! We may see more accumulation in the meantime or another try to break key support of 1.1500.