This summer we saw the EURUSD finally breakout above the triangle pattern it has been in since last February, but our expectations for a real breakout continuation towards 1.20 were smashed with sellers bringing the pair back down from 1.17 towards 1.11 where the daily cloud support is found.
The decline from 1.1704 is impulsive and as I said to my Trading2dayFX subscribers last week, no matter what Fed does regarding the rates this is what I was expecting the EURUSD to do.
EURUSD bounced towards the 61.8% Fibonacci retracement as I expected since FED kept rates unchanged only to see a bearish reversal from the 1.1460 area. Subscribers were informed in real time through my twitter premium service that I opened a short position at 1.1447 and that I would add below 1.1380.
So what now? EURUSD has reversed from the 61.8% retracement and is testing the 4 hour Ichimoku cloud support and the red upward sloping trend line. Breaking below this support will accelerate selling pressures and push price towards 1.10 where the longer-term support is found.
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