EUR/USD Price Analysis: Bulls eye a run to test 1.0700 and the bears eye 1.0600

EUR/USD traders get set for the Fed and eye1.0600 as a key support area and 1.0520s below it.
EUR/USD resistance is marked up as 1.0700 and 1.0790 thereafter.

Ross J Burland FXStreet

As per the prior analysis, EUR/USD soars as US CPI comes in below expectations, EUR/USD has continued to test higher in the 1.06 area, taking on the support quarter to reach a high of 1.0671 as the following analysis illustrates.

All will now depend on the Federal Reserve at the top of the hour but the key levels are identified below:

EUR/USD prior analysis

It was stated, that in the above daily chart, the market was shown to be on the front side of the bullish trend and there was every possibility that the price would continue higher into the in-the-money shorts towards 1.0800/50 in the days or weeks ahead.

EUR/USD update

As illustrated, the price has moved into the target area and is leaving a W-formation in its tracks. This is a reversion pattern whereby bulls would be expected to move in at a discount from the neckline should there be a testest thereof.

This marks 1.0600 as a key support area and 1.0520s below it as being the CPI take-off point. Above the spot, we have 1.0700 as a key level where a measured move of -0.272% of the potential correction's range to support meets the prior mid-summer resistance looking left. We have 1.0790 thereafter as the next level.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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