EUR/USD Spot Price: 1.1782
Support: 1.1722, 1.1700, 1.662
Resistance: 1.1830, 1.1850, 1.1900
Trade Ideas - Focus on USD Strength
The EUR/USD has been bullish for a while now, however as the momentum has been shifting for the USD, so to has the direction of the EUR. As a result we are now at an inflection point, whereby there is every chance that we will see more USD strength in the coming months.
Enter short on a push to 1.1850 as that’s a key resistance level. If we get USD strength then we have the potential to break to the recent lows at 1.1720. If we break above 1.1900 then there might not be enough USD momentum at the moment.
EUR/USD 240 min Chart - EUR/USD is looking weak
Last week the USD continued its resurgence. The momentum has been to the downside for some time now and over the course of the week, it looks to me that we have started to put in a bottom.
It all started with the FOMC who came out and suggested that the timeline for interest rate rises was coming forward. Many analysts are suggesting that we will get the next increase in December of this year. That was followed by U.S. Federal Reserve Chairman Janet Yellen who said that they want to raise rates gradually, but the timeline looks realistic. That did enough to spark the USD to life and the majors have been on the backfoot all week.
The key for traders this week is clearly US employment data, headed by non-farm payrolls on Friday. A strong result on the employment front will strengthen any case the Federal Reserve has for an interest rate hike. There’s also ECB minutes which have the ability to be a key driver for the Euro.
The EUR/USD has fallen away sharply over the last week and we are now in a range between 1.1700 and 1.1850ץ Any break of those two levels will indicated a major direction move change in the short-term.
EUR/USD - Key Levels
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