The EUR/USD sell-off took a big step forward on Monday. Before that, we had a break of a descending triangle as sellers finally took out the Fibonacci level at 1.1275. But sellers weren't able to make much ground below 1.1200 last week and the breakdown remained short-lived until sellers took control on Monday. As I wrote in the post on Monday, chasing the pair lower after such a strong move seemed dangerous, and given the prior support at 1.1200 or even around the 1.1275 level, there were two areas of interest for lower-highs.
Given the pullback in USD on Tuesday, EUR/USD rallied all the way from a support test at 1.1100 up to re-test that resistance zone around 1.1275. But, notably, bears came in to defend a lower-high, keeping price below the 1.1293 level that marked the swing high on Friday.
Sellers have taken another step forward today to drive prices back-below the 1.1200 handle and the pair remains in the spotlight for USD-strength scenarios as we go into a really big batch of data tomorrow. The U.S. takes centerstage with retail sales, PPI and a speech from Chair Powell, but there's also some European drivers on the calendar before that.
In EUR/USD bears need to hold resistance below 1.1275 to retain control of the trend, and for next support 1.1100 seems obvious with the 1.1000 and 1.0943 levels below that. - js
Given the pullback in USD on Tuesday, EUR/USD rallied all the way from a support test at 1.1100 up to re-test that resistance zone around 1.1275. But, notably, bears came in to defend a lower-high, keeping price below the 1.1293 level that marked the swing high on Friday.
Sellers have taken another step forward today to drive prices back-below the 1.1200 handle and the pair remains in the spotlight for USD-strength scenarios as we go into a really big batch of data tomorrow. The U.S. takes centerstage with retail sales, PPI and a speech from Chair Powell, but there's also some European drivers on the calendar before that.
In EUR/USD bears need to hold resistance below 1.1275 to retain control of the trend, and for next support 1.1100 seems obvious with the 1.1000 and 1.0943 levels below that. - js
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.