Thanks to a strong USD, the EUR/USD has fallen away from its most recent highs. The 1.2500 level now looks pretty far away and we have been bearish for the last two sessions.

We also have a couple of big events this week. We have the FOMC minutes and a recap of the ECB meeting. Both which have big implications.

The Fed wants to hike rates while the ECB want to normalize their monetary policy. Both appear to be happening very soon and the minutes of both mostly have the potential to cast some doubt.

Moving Higher

I feel that we are getting set for a turnaround and a run back up to overhead resistance.

I’ve been talking about 1.2300 as a good point for a long entry all week. Around that area, we see the potential for a bounce.

We have a major support level and the round number at 1.2300. We are also honing in on the upward trend line that has been in place for some time.

Just remember that there are some volatile times ahead thanks to the Central Banks, so be prepared to give these trades some room to move. Or wait until after bounce updates.

EUR/USD – 240 min Chart.