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EUR/USD Digests Wednesday’s Reversal; Resistance Remains 1.3720/50

EUR/USD Digests Wednesday’s Reversal; Resistance Remains 1.3720/50

Jamie Saettele, CMT, Sr. Technical Strategist

Hourly

eliottWaves_eur-usd_1_body_Picture_10.png, EUR/USD Digests Wednesday’s Reversal; Resistance Remains 1.3720/50

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

Automate trades with Mirror Trader and see ideas on other USD crosses

-The EURUSD formed a triangle pattern prior to FOMC. Comments before FOMC were “triangles sometimes form before a final ‘blow-off’. In this case, a triangle measurement is 1.3915, which is in line with the long term trendline.” The triangle played out although the ‘thrust’ was especially weak. Price didn’t even make a YTD high. The weak ‘thrust’ may signal a weak market going forward.

-An outside day reversal unfolded on Wednesday (price actually engulfs the prior 7 days).

-Recent support is now resistance from 1.3720 to about 1.3755.

Trading Strategy: Order to short but moving the entry to 1.3750 (in line with underside of broken trendline), stop 1.3815, target 1.3420.

LEVELS: 1.3525 1.36211.3657 | 1.3709 1.3757 1.3811

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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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