USD – Is testing pivotal resistance, EURUSD bounce?
EUR hit two month lows, trading below the 1.09 handle as the Fed decided to leave policy unchanged with a hawkish statement, advising the conditions that would be appropriate for a December rate hike. The conditions for FOMC to raise rate require maximum employment and inflation reaching the 2% target, while the outlook for Eurozone and ECB who are concerned about China and EM giving a bearish case for the pair.
Trades to a our near term objective of 1.09 and tests stops just below where profit taking emerged. Today while 1.10 caps intraday upside reactions anticipate a retest of the post FOMC lows, with a daily symmetry objective at 1.0868 as the next downside objective.
- Using my analysis of the USD Index which is testing pivotal resistance, I will be watching the EURUSD today. I will play counter trend long on a secondary low in price against the overnight low. This set up requires a sustained break of 1.10 and pull back that holds the 1.0950 area. I will venture long here targeting a retest of 1.12 leaning against current lows. Be sure to keep an eye of the USD Index chart for added confirmation for this set up.