Forex Marketz Daily Forex News – Fully Markets Update
The EUR/USD Forex market is trying for a weak recovery today. The euro has gapped higher and is now above the 1.10 pivot.
Technical Analysis
Looking at today’s EUR/USD technical analysis there is technical resistance lining up at 1.1091. A daily close above this level challenges the technical resistance level lining up at 1.1140. The alternative technical analysis, should the euro fall back lower thereby pushing the EUR/USD lower. There is near term support lining up at 1.1015, former resistance level. Below this level we have another technical support lining up at 1.0956/55.
Trade Strategy
Let us look at the trading strategy for the EUR/USD Forex market. The risk even horizon has the US Fed’s FOMC policy meeting scheduled to begin tomorrow. Depending on the post remarks, could cause extreme volatility for the US Dollar. If Yellen remarks are too dovish, the dollar will weaken considerably. If the Fed indicated a rate hike in September, the dollar will strengthen. Looking at the technical analysis, price action is too close to a technical resistance level to warrant a long EUR trade at this time. We are also too close to a technical support level. From a risk to reward standpoint timing for either a long or short trade is not quite right. Due to all of the above, taking into account both technical analysis and event risk, I am opting to stand aside for now. I will wait for a better trade opportunity to come along.