28th of August. A possible pullback near $ 1.1820 ahead of ECB meeting next week!
The EUR/USD finally surged to as high as $1.1963 on Monday after being trapped in the range of $ 1.1665/1.1850, for almost 3 weeks. The rise on the euro was attributed to ECB’s President Draghi who refrained from talking down the euro at the Jackson Hole Symposium on Friday, while Fed Chairwoman Janet Yellen made no comment on the U.S. monetary policy, also boosted the common currency. Looking ahead, on the hourly Chart, we suspect a possible setback near $1.1800/25 in the short term ahead of USD Non-Farm payrolls on Friday and ECB meeting next week. On the upside, breach of resistance at $1.1960 would open doors for a test at $1.2240
On 1st of September 2017- Don't write off a move back to a new high above $1.2069!!
As highlighted early on Monday, we were looking for a move lower near 1.1800/25 on the EUR/USD. The pair indeed printed a low of $1.1820 yesterday before bouncing back again near $1.1900 this morning. On the hourly chart, we suspect that the Euro could still resume its bullish stance and possibly head back above $1.2000 again. Looking ahead a break above $1.1985 might open the way for a new high near 1.2250/1.2300, while a move below $1.1739 would suggest a strong reversal on the euro.
EUR/USD: Following the break above resistance zone at $ 1.1984 yesterday, our view remains for a higher EUR/USD near 1.2250/1.2300 in the coming weeks before we see bears emerging. On the downside, immediate support might be found at $1.1992 and a break below might trigger a slide towards 1.1900/1.1960
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