Will it break out after the FOMC rate announcement and Janet Yellen’s speech or will we see Dollar strengthen once again. 1.08 is very well supported up to now despite any news that came out against it the last few days. It is now very clear that the market awaits for a reason to move. I believe it will surprise most to the upside. However we need to have a plan. As long as price is above 1.06-1.07 I’m bullish EURUSD and bearish the Dollar. If price breaks above 1.0950 we then should expect a rally towards 1.11-1.13.
EURUSD is trying to hold inside the daily Ichimoku cloud sliding lower inside the red downward sloping channel. The overlapping structure of the decline implies to me that the next trend will be to the upside. If and when 1.0950 breaks this will give us a bullish signal.
Yesterday I mentioned that the rejection was a bearish sign and that price would move lower. There is a good chance we make new lows in GBPUSD below 1.4070. A break however above 1.4340 will open the way for a bigger bounce towards 1.45.
Another warning I gave out yesterday about the reversal signals as price was breaking down below the upward sloping channel. 117.70 target has been reached. This is support area for the short-term but I cannot rule out a push even towards 117-116.50.
Price is also testing the 38% Fibonacci retracement. 118.50 is resistance and if broken we should expect prices to move towards 120.
As expected price has reversed higher towards the Ichimoku cloud for a back test. Now is the time to think about going short again if the price provides a reversal pattern. Next resistance and possible reversal level is the 61.8% Fibonacci retracement.
That is all for now, thank you for taking the time to read my latest post. Have a nice day.