The EUR/USD is looking bearish as the USD has managed to rebound.
I’m looking to enter short on any bounce with a keen eye on the 1.1800 level. Downside I would like to see us take out 1.1700 and from there we might see an extended decline.
EUR/USD 240 min Chart - EUR/USD is Bearish
Central Banks are in the Firing Line this Week
Last week we were all waiting on the US employment data. In the end there wasn’t too much of fuss and the majors all went about their business as usual. The EUR/USD kept of grinding lower and is now very much bearish thanks in part to the looming rate rise in the US.
The FOMC is out this week and the chance of a rate rise is high. So much so that it is all but factored in already. This might be a positive or a negative for the USD. Given that it is factored in, that might mean that the USD will actually fall if there is any dovish talk at all from the Fed. That was the case when the minutes of the last meeting were released.
At the same time we have the ECB out with their interest rate decision. This time we don’t expect much to happen but it will also be a case of what is said and if in fact there are some other levers that are to be pulled. For the most part I’m happy to maintain a bearish bias for the week unless there are some fireworks from the central banks.
Technical Analysis - The Key Levels
The EUR/USD is very much in bear territory. Further downside will see us take out 1.1700 which is the major level of interest at that moment. If we break through we have the potential to really fall back to the lows. However much will depend on the outcome of both central bank meetings.
EUR/USD - Key Levels
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