After a few weeks of rise, eur/usd finally
reversed. The turnaround started on Monday (yesterday), when having reached
1.1370 resistance the pair formed bearish rail road tracks pattern and started
collapsing. Today’s price action only confirmed bearish bias in Euro. You can
open both 15 and 1 hour chart to see that. Price tried to rally to intra day
resistance of 1.1330 two times today, but failed. Each time it formed a bearish
candle pattern after which price fell. As yesterday’s (low) support of 1.1280
was broken during US session we may assume that the move downwards will only
accelerate this week. Be ready to sell at failed rallies to intra day
resistance levels.
Tomorrow’s possible intra
day resistance will be at 1.1280. You remember the old saying that previous
support becomes resistance and vice versa. I think this could be true in this
case too.
The next level of support is
seen in the area of 1.1240-1.1220. Hourly chart clearly shows that Euro bulls
had to work hard to break the level from the 8th to 10th
of September.
Important fundamental data
that may impact the exchange rate of the pair is on Thursday when Federal
Open Market Committee Rate Decision is
announced at 18:00 GMT. Watch price action after the event and be ready to go
in the direction market goes.
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