EUR/USD: How the bulls react to resistance? [Video]
|EUR/USD
The dollar strength in the wake of the Fed meeting did not seem to last even 24 hours, as a strong rebound on EUR/USD into the close last night has once more prevented a key breach of support. Breaking the four month uptrend suggests that this is more of a consolidation range now. However, the reaction higher yesterday was telling. The dollar was threatening to go on a near term bull move (which would drag EUR/USD lower), but it was rejected around the key support band 1.1695/1.1750. Rebounding from 1.1735 has once more left the outlook neutral. Daily momentum indicators reflect this too. How the bulls react to resistance now between 1.1900/1.1920 will determine whether there is a renewed appetite to chase the market higher. Yesterday’s candlestick was a “bull hammer” and implies a near term positive bias for the swing higher. An early consolidation suggests that there is still come uncertainty over the move.
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