EURUSD: Post-FOMC Rally during Initial Resistance

Talking Points

  • EURUSD Post-FOMC convene contrast initial resistance- Constructive above 1.0640
  • Updated targets cancellation levels
  • Looking for some-more trade ideas? Review DailyFX’s 2017 Trading Guides. Join Michael for Live Weekly Trading Webinars on Mondays at 13:30GMT (8:30ET)

EURUSD Daily

EURUSD Daily Chart

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.

EURUSD 240min

EURUSD 240min

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.

EURUSD SSI

  • 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

EURUSD: Post-FOMC Rally during Initial Resistance

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 mboutros@dailyfx.com or Click Here to be combined to his email placement list.

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