EUR/USD: Bullish outlook under growing pressure [Video]
|EUR/USD
Reaction to the dovish Federal Reserve announcement would suggest that the short USD trade (which has driven EUR/USD higher) is a little tired. The resulting dollar rebound has dragged EUR/USD lower in a move that continues today. The bullish medium term outlook on EUR/USD is coming under growing pressure now. Breaking the four month uptrend (which is at 1.1825 today) the key medium term support band 1.1695/1.1750 is now coming under threat. We have previously noted that a close below 1.1750 would be a deterioration, but only below 1.1695 would be the confirmation of the strong euro position. Technical momentum indicators suggest that this is a move that is close to turning what is, for now, a trading range (between 1.1695/1.2010) into a top pattern. How the bulls respond to 1.1750 could be key to this. The hourly chart shows a failure of 1.1810/1.1825 in the wake of the FOMC decision which is now initial resistance to overcome. Continued failure under there would increase downside pressure on 1.1695/1.1750. A close under 1.1695 opens the 1.1500 area.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.