Yesterday, the FOMC held on rates as expected, it was the press conference with Fed Chair Powell that sparked a strong reversal in the Dollar. The reversals posted solid technical set-ups for more follow-through strength in the Dollar in the days ahead. The Euro and Swiss Franc in the spotlight…
EURUSD reversed from an important trend-line
The Euro traded up to the trend-line running down off the March high before selling off to post a sharp reversal day candle. As long as price doesn’t close above 11265, then the reversal off trend resistance will remain valid. Looking lower, a run at the 11174 low looks to be in store soon with potential for a drop to fresh lows and a test of underside trend-lines near 11000.
A break of 11000 would be considered a big deal given it would put EURUSD under all support lines and open up a path towards filling the 2017 French election gap at 10724. For now, carving out a fresh swing-low is the objective and I’ll take it from there as low volatility conditions continue to favor booking profits once new swing lows or highs are established.
See what fundamental factors are in play for EURUSD in the Q2 Euro Forecast.
EURUSD Daily Chart (reversal candle off trend-line)
USDCHF reversed from support, has 10300s on its mind
USDCHF pulled back to the top of a broad wedging pattern and the November high before turning strongly higher yesterday. This should be enough to get the pair running towards a couple of significant swing-highs formed during 2015 and 2016, around the 10330-mark. A drop below yesterday’s reversal low at 10266 will be reason for caution on bullish bets.
USDCHF Daily Chart (10300s resistance in focus)
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---Written by Paul Robinson, Market Analyst
You can follow Paul on Twitter at @PaulRobinsonFX