The EUR/USD was a top performer last week as we ended up breaking out of the top of our range at 1.1850. We are now firmly in bullish territory and looking to buy pullbacks.
I’m looking to enter long on a pullback to 1.1880.. That’s the resistance turned support area. If we fall into the previous range then we have to assume a more neutral position in coming weeks. 1.2000 is the new upside target.
EUR/USD 240 min Chart - EUR/USD is back being bullish
FOMC Minutes Hit USD
Interest Rates in the US were assumed to be headed up prior to the FOMC minutes last week. But that has now rapidly changed. A hike in December appears to be all but a certainty, but because of some dovish talk and fear around slow inflation, rate increases in 2018 are now in doubt.
That meant a sharp fall in the USD and the EUR was one of the big winners. We saw a strong rally to the upside and we took out a number of key resistance levels.
This week the question will be whether or not the USD can recover. New Fed boss Jerome Powell will begin the transition into the new job and the market will be waiting on any opinion he has to see what the likely direction will be. We also have a number of Fed speakers, including Janet Yellen and Eurozone CPI which will be the big market movers for the Euro.
Key for the Week - Eurozone CPI
The calendar is littered with numbers this week and we will have a few key numbers to drive the USD. However the EUR will be impacted most of all by Eurozone CPI.
Technical Analysis - The Key Levels
The EUR/USD is back looking really strong against a very weak USD. The new upside target of 1.2000 is now clearly in focus. We have taken out 1.1850, which now becomes the major support level for us below.
EUR/USD - Key Levels
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