On Wednesday, the EUR/USD decreased tremendously with 160 pips on the Fed meeting. The European currency depreciated from 1.3424 to 1.3260 yesterday, matching the negative money flow sentiment at below -16% and closing the day at 1.3291. The Euro weakened slightly further this morning, reaching 1.3250.
A new upward channel is on hold on the 1 hour chart, while wide trading range has formed on the 3 hour chart. A break above the nearest resistance and yesterday's top at 1.3424 may trigger further strengthening of the euro. Going below today's bottom and first support at 1.3250, however, could confirm continuation of the bearish trend towards the next objective downwards of 1.3136.
Today's data focus is on German PPI, France, Germany and EMU PMI, U.S. Jobless claims, Philadelphia Fed index, Leading indicators and Existing home sales, at 6, 6:50, 7, 7:30, 8, 12:30 and 14 GMT respectively.
Quotes are moving way below the 20 and 50 EMA on the 1 hour chart, indicating strong bearish pressure. The value of the RSI indicator is negative and calm. The MACD is positive and declining, while the CCI has crossed down the 100 line on the 1 hour chart, giving overall short signals.
Technical resistance levels: 1.3424 1.3340 1.3465
Technical support levels: 1.3250 1.3136 1.3010
Yesterday we made +9 pips profit/loss on EUR/USD from the following sent to clients only signal:
5:19 GMT+1 Sell EUR/USD at 1.3392 SL 1.3418 TP 1.3342, exit sent at 6:42 GMT+1.
Total yesterday +80, as shown at our web site.
EUR/USD Chart" title="EUR/USD Chart">