- EURUSD Post-FOMC convene contrast initial resistance- Constructive above 1.0640
- Updated targets cancellation levels
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Technical Outlook:EURUSD has continued to trade within a proportions of an descending Modified Schiff pitchfork arrangement with a post-FOMC convene now coming initial connection insurgency here during 1.0740/45. Looking for some pullback from these levels though a concentration stays aloft while above support during 1.0640– a region tangible by a 100-day relocating average, slope support a Mar opening-range high. A crack above this insurgency section targets successive topside objectives during 1.0796-1.0820 and vicious insurgency into a top median-line together (blue) / 2016 open during 1.0872.
Notes: A closer demeanour during cost movement highlights near-term slope insurgency with a pivotal Fibonacci connection only aloft during 1.0757/60. The evident allege is during risk streamer into this segment though we’ll preference a long-side while above a weekly open / slope support during 1.0675 (initial support 1.07) with a bullish cancellation turn during solid 1.0640.
A entertain of a daily normal loyal operation (ATR) yields distinction targets of 19-22pips per scalp. Added counsel is fitting streamer into a tighten of a week with a University of Michigan Consumer Confidence surveys expected to fuel increasing sensitivity in a USD crosses.
- A outline of a DailyFX Speculative Sentiment Index (SSI) shows traders are net-short EURUSD- a ratio stands during -1.96 (33.8% of traders are long)- bullish reading
- Long positions are 28.4% reduce than yesterday and 29.5% reduce from final week
- Short positions are 22.8% aloft than yesterday and 27.8% aloft from final week
- The stream energetic of building short-positioning as cost breaks by a monthly opening rang highs keeps a broader concentration aloft in Euro for now. That said, we’ll preference vanishing debility on a pullback in cost while above constructional support.
Relevant Data Releases
Other Setups in Play:
- DXY Poised For Yellen: Here’s a FOMC Game Plan
- NZD/USD: FOMC to Fuel Critical Range-Break
- EUR/CAD Pullback to be Viewed as Opportunity
- Strategy Webinar: USD, EUR Crosses in Focus as Markets Await Yellen
– Written by Michael Boutros, Currency Strategist with DailyFX
Follow Michael on Twitter @MBForex hit him during firstname.lastname@example.org or Click Here to be combined to his email placement list.