EUR/USD 1H Chart 8:25AM ET 11/21/2013
ECB, FOMC: During the 11/20 session, EUR/USD stalled at 50% retracement of the 1.3832-1.3293 dip that occurred just a few weeks ago. Then it fell on dovish ECB headlines that noted the bank considering a range of options in increase liquidity. The FOMC minutes also gave the USD a boost towards the end of the 11/20 session, but EUR/USD found support just above 1.34 during the 11/21 Asian-European session.
Breakdown: This downswing broke below a rising channel from 1.3293 (11/6 low). This break can be reviving a bearish outlook that preceded the rising channel, which retraced 50% of the prevailing bearish swing. There might still be some near-term upside toward 1.35 or a tad higher, but EUR/USD looks bearish at the moment. As we start the 11/21 session, it is kissing the 200hour SMA, awaiting next intra-session swing.
USD/JPY 1H Chart 8:30AM ET 11/21/2013
FOMC, BoJ: The USD/JPY was not boosted immediately after the FOMC minutes. However it may have stored some “potential energy” ahead of the BoJ policy statement.You can see the market coiling a bit throughout the week into somewhat of a triangle.
As expected the BoJ held steady, which allowed that “stored bullish USD energy” to push through the week’s high and continue toward the 101 handle, which is about to be captured as we begin the 11/21 session.
The next resistance pivot is around 101.50. The 2013-high is 103.70. These previous highs are in sight as the USD/JPY moves away from the 100 handle, and we might not get any significant throwbacks.
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