EUR/USD Violates The Bearish Butterfly To Form the Fresh Range

As expected, during their January meeting, the Fed (Federal Reserve) kept interest rates on hold. They did , however, make the statement hawkish by stating that inflation is likely to rise this year.  In response, we saw bullish trends in the dollar.

Since the release of FOMC, the major currency pair EUR/USD has been trading with a bearish sentiment. Last week, the EUR/USD violated the bearish harmonic pattern called the ”bearish butterfly pattern.” The pattern’s C to D wave was completed at $1.2300, and the pair was expected to stay bearish below this. Closings above $1.2300 suggest the bullish bias of investors.

EUR/USD – Daily Chart

EUR/USD – Key Trading Levels

Support     Resistance

1.2377    1.2465

1.2338    1.2514

1.2289    1.2553

Key Trading Level:    1.2426

For now, the Euro is likely to face support at 1.2385 and 1.2335, while having resistance at 1.2425.

EUR/USD Trade Plan

Investors are advised to keep a close eye on $1.2380, as below this, the EUR/USD can give us a selling opportunity with a target of 1.2345. Above 1.2380, we may see bulls dominating the market. Good luck!