EURUSD – To Test And Fail First Look At 1.11
Fundamental: EUR gave back a portion of Wednesday’s gain, fell 0.8 percent versus the dollar to a low of 1.0924 after the comments from ECB’s members doubted about how much Fed and ECB policy will diverge. Traders widely expect the Fed to tighten monetary policy while ECB to ease, the drop of ECB’s bank deposit rate was smaller than expected. However, dollar was supported since traders are convinced the Fed will raise rates at the next meeting
Technical: While 1.0850 caps intraday downside corrections expect a grind higher to test 1.1050/1.11
- I am looking for the Euro to form a wedge pattern as we approach 1.11, I am anticipating an interim pull back from current levels to set up another leg higher that will lack momentum and ulitmatley run into decent offers on the initial move above the figure. Watching for intraday reversal patterns I will venture short as per the chart below, targeting a minimum correction back towards 1.07 and a potential broader trend continuation pattern to retest and break current cycle lows.
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