Daily Resistance In View For EUR/USD

It is shaping up to be a tough day on the forex for the Greenback. Losses versus the euro and pound sterling have highlighted the action as currency players attempt to price in Wednesday’s FOMC Minutes and testimony from Jerome Powell. Subsequently, the EUR/USD extended post-FOMC Minutes gains earlier in the session.

In total, it is fair to say that Jerome Powell’s testimony has been consistent with current FED themes. Growing uncertainty and accommodative policy are the primary talking points, with very little in terms of surprises. Perhaps the only real difference-maker from Powell was Wednesday’s comments on Libra. Other than that, it has been more of the same from the FED Chair, with sentiment turning bullish for the EUR/USD.

On Wall Street, record highs are the order of the day as investors go long in hopes that a dovish FED will support economic growth. The DJIA is holding firm above 27,000 for the first time in history. Not to be outdone, the S&P 500 has posted all-time highs above 3000. These are epic valuations and may be only the beginning if the FED goes all in on quantitative easing over the intermediate-term.

Topside Resistance In View For The EUR/USD

Amid the charged news cycle of the past two sessions, the EUR/USD has broken out of an exceedingly bearish trend. Rates are back above 1.1250 and may challenge 1.1300 by the weekend.

Here are the resistance levels to watch in the EUR/USD for the near future:

• Resistance(1): Bollinger MP, 1.1290
• Resistance(2): Daily SMA, 1.1296

Bottom Line: As of this writing (12:40 PM EST), the EUR/USD is beginning to fade. However, if this pair finishes the week strong, a short from daily resistance may set up by Friday’s closing bell.

Until elected, I will have sell orders in the queue from 1.1294. With an initial stop at 1.1326, this trade produces 32 pips on a standard 1:1 risk vs reward ratio.

ABOUT THE AUTHOR See More

Shain Vernier

US Analyst

Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.

Related Articles

U.S. Dollar Index Falls Below 99.65—PMI Miss, Jobless Spike Hit Hard`

7 hours ago

Save

EUR/USD Gains—$1.1419 in Sight on ECB Shift, USD Weakness

13 hours ago

Save

$50 Silver? Grummes Predicts Bull Run Amid Chaos

13 hours ago

Save

Comments

0 0 votes

Article Rating

Subscribe

Login

Notify of

new follow-up commentsnew replies to my comments

Please login to comment

0 Comments

Oldest

Newest Most Voted

Inline Feedbacks

View all comments