Much like the rest of the majors the Euro has been buoyant against the dollar since a dovish sounding Fed Powell the prior week. Brain trusts have been widely speculative since withe the more extreme coming from a Citibank analyst calling for 8 rate cuts in succession. For today we have another appearance from Mr. Powell before the House Finance Committee and Wednesday the Senate Banking Committee, likely providing more clarity on the Fed’s intentions as market speculations have run well ahead of the data.
Resistance
- 1.09023 – Daily Consolidation Resistance
- 1.08832 – Intraday Consolidation Floor
- 1.08451 – Monday’s High
Support
- 1.08163 – Intraday Consolidation Floor
- 1.07897 – 50D Moving Average
- 1.0751 – Intraday Consolidation Resistance
EURUSD gapped lower at the open only for prices to cover said gap and push the highs slightly higher before easing in US trade. Chart wise the bearish open gap and new high creates some confusion over market psychology. Coupled with a daily scale resistance multiple tops and bearish divergence in the 4H picture we will be taking a binary view for the Euro. Ease below 1.08163 with a decent sized candle in the hourly chart and we would advocate selling to pull back towards the 50D Moving Average. Push past yesterday’s highs and this could pave the way for a rally towards June’s high.
