EURUSD yesterday was mostly a US story with the market once again focusing on inflation pressures with the Employment Cost Index coming in at 1.2% against a 1.0% quarter-on-quarter forecast. The Euro area mostly saw second liner data with Flash CPI Estimates for the region mostly inline with the consensus forecast at 2.4%. Ahead we have a holiday for May Day, Labor Day, which puts US FOMC policy meeting as the day’s core issue.
Resistance
- 1.07464/529 – 38.2 Fib / Friday High
- 1.07354 – Tuesday High
- 1.0691 – Intraday Low
Support
- 1.06627 – Today’s Low
- 1.06388 – Intraday Range Play Low
- 1.06012 – Prior Swing Low
Daily EURUSD chart is a teaching moment for price action and Fibonacci Retracement’s. The sell-off from March 8 highs pulled back to the 38.2 Fib rectracement area, saw a consolidation/distribution before a clear rejection. We have mostly minor support levels underneath market prices until we hit the sell-off lows of 1.06012. Immediate risk will be to see a follow through to yesterday’s drop until the previous SWing Low at 1.0612. From there it will be about just how hawkish the Fed will sound in today’s FOMC, see calendar here.
