Much like the rest of the majors, Euro also capitalized on the growing rate cut story for the US though failing to push past the highs from June. At this point it appears that people are forgetting that its was the ECB that started the latest easing cycle and are looking for the US Fed to move more aggressively if data remains disappointing. For now next key event for Euro traders will be another rate decision on Thursday though expectations are for a pause after the previous cut.
Resistance
- 1.09812 – March High
- 1.09426 – High for March 21
- 1.09114 – Friday’s High
Support
- 1.08603 – Intraday Consolidation Floor
- 1.08050 – Intraday Consolidation Floor
- 1.07708 – Intraday Consolidation Resistance
EURUSD opened with a bearish gap following a strong run from the previous week. Looking at the charts we may be getting a rejection from the highs off June. Indicator wise we are overbought in daily stochastic and are showing a bearish divergence from the 4H picture. Given this we are looking at the break of 1.08603 as a possible entry for bears. We do need to point out that we do not have reversal patterns as of yet so expectations for any drop should be limited. For the buy side we need a clear break of 1.09114 accompanied by news before going long.
