Forex Marketz Daily Forex News – Fully Markets Update
EUR/USD (1.2455)
- Resistance Levels: 1.2565, 1.2640, 1.2735
- Support Levels: 1.2490, 1.24, 1.2338
The EUR/USD has been moving higher, hitting a new monthly high, since forming a bullish reversal signal, a Morning Star Candlestick, visible on the below daily MT 4 chart. We are now noting short term resistance lining up at 1.2565, with a daily close above this level challenging the next technical level at 1.2640. Should the euro lose steam and correct lower, we see support at 1.2490. A break back below this level would then challenge the support at 1.24. This level is a key handle. A move, and daily close below this level, is bearish for 1.2338 and lower.
Let’s turn our attention to the below 4 hour intraday chart. The euro is turning lower as we are seeing broad U.S. Dollar strength. Not only with the euro but with most of the Dollar’s key trading partners. Keep in mind we are waiting on the Fed to hear its language regarding interest rates. With that said, this corrective bounce is an opportunity for another short trade. I am standing aside waiting for this to develop as I feel the broader strength in the dollar warrants such a trade. Just not right now.
As always, trading strategies are educational in nature and do not represent trade recommendations. Always perform your own technical analysis to support my conclusions before placing a trade.
