EURUSD saw a follow drop to its sell-off from Wednesday courtesy of a looming threat of airstrikes from Iran on Israel. The Iranian regime subsequently launched 200 missiles and drones towards Israel after giving notice and now considers the matter close. This puts the bag in Israel’s hands will it conduct a retaliation in turn on Iranian soil to what was essentially a one off retaliation by Iran to an attack on its diplomatic compound in Damascus that killed IRGC leadership. This for now will be the overwhelming concern for currency markets and Euro in particular.
Resistance
- 1.07158 – Minor: 38.2 Fib Retracement from April 10
- 1.06948 – Strong: Swing Low From Feb 14 (breakout point)
- 1.06561 – Minor: Consolidation Floor November 2023
Support
- 1.06226 – Minor: Current Swing Low
- 1.05168 – Moderate: Range Floor October 2023
- 1.05000 – Psychological
EURUSD charts are showing little sign of exhaustion for its sell-off. Recall that outside the prospect of a wider conflict in the middle east we have diverging trajectories in inflation between the US and Europe. Outside of a kumbaya moment in the middle east we continue to look for opportunities to short heading for the psychological support level. Either at the break of swing lows or following a pullback to the 1.06948 breakout point. Note we have dead crosses forming among the moving averages.
