With EURUSD’s failure to follow through higher seeing it closing lower below 1.1357/1.1385 levels yesterday. The risk has been shifted to the downside.
This development leaves support standing at the 1.1329 level where a cut will aim main support at the 1.1205 levels, further down, sees a sell-off towards the 1.1048 levels.
On the upside, resistance comes at the 1.1357 levels ahead of the 1.1385 levels(main), a break through the 1.1385 levels will shift focus on the 1.1440 levels, a halt is very likely but a breach will retake the 1.1533 levels. Further out, resistance comes at the 1.1679 levels.
Conclusion : As long as 1.1385 resistance holds on a daily closing basis, the EURUSD remains vulnerable to the downside towards the 1.1329 levels ahead of the 1.1205 levels, a clear break above the 1.1385 levels will shift focus on the 1.1440 levels and possibly higher on the 1.1533 levels.
Notes:
1- Rise from 1.1150 probably is over around 1.1435 levels.
2- Sustained breakout – daily closing – below 1.1329 will confirm short term topping at the 1.1435 levels.
3- Sustained breakout – daily closing – below 1.1205 will suggest that rise from 1.1048 is over and a lower leg below 1.1048 is strongly suggested.
4- According to the 4- hour chart of EURUSD, the upside momentum almost gone..
5- According to US dollar index daily chart, the key support 94.30 should bring strong reversal to the upside. This level has been rejected with reversal candle on a daily basis!!!
6- FOMC statement yesterday, had 2 impact on US dollar, short term : bearish, and medium term : bullish ..
