Article originally published on innerfx.com and republished here with permission
Quote of the day: “When the water reaches the upper level, follow the rats.” ~ Claude Swanson
Good morning. The euro still holds gains trading in a narrow range a few points below Monday’s top near $1.3700. Overall short-term sentiment is bullish as long as the pair holds above 1.3500. Recent intraday pullbacks towards 1.3575/00 have been short-lived, therefore selling at these levels is not the best thing to do right now. Key events of the FX Calendar today are the FOMC Meeting Minutes and Trichet’s speech.
As you can see in the chart below, interim resistance around 1.37 is still under pressure but a more notable barrier stands around 1.400
US Dollar’s weakness remains intact and it seems that more downside is likely – towards parity where important support is formed.
Not much changed since yesterday as resistance remains intact but the pullbacks are short-lived, therefore keeping an eye on resistance at 1.00 – considering new buying opportunities is probably the best thing to do for now.
Resistance around 1.5650 still holds but we’re not far below so there’s still a good chance that price will break higher.