Trading Scenario: Now as we look into charts, EURUSD last week made a high of 1.3333 . Our Target on EURUSD is 1.3303 which we posted in previous analysis and it has been successfully achieved.
Today we have seen a drop in EURUSD to 1.3135 level, which is support level. Currently EURUSD trading just above that sited support level.
If we look into more details here... EURUSD finally broke out of minor trendline. From our point this could be a correction to the current uptrend which we are seeing. We are still bullish on this pair until we see significant evidence. In coming days we might possibly see downward correction on this pair.
We do keep some fundamental factors in mind such as FOMC Statement coming out of US today might have an impact on future direction of EURUSD.
If we see a break below 1.3140 support level, EURUSD could potentail drop to 1.3100 level followed by 1.3000, where EURUSD has significant support.
If we look price action any rise on this pair could potentially face resistance at 1.3210 to 1.3250 level, where possible bear pressure can come in.
If price holds 1.3140 support level EURUSD could potentially bounce to 1.3220 & 1.3250.
Alternatively if price breaks below 1.3140 doors could open up targeting 1.3100, 1.3150 & 1.3020.
Important Note: FOMC fundamental risk event is due in US session
Entry Strategy: long above 1.3140 or short below 1.3140
Trade Suggestion: Go long around if price holds 1.3140 support level and bounces of it targeting 1.3220 & 1.3250.
Alternate Trade Suggestion: Go short if price breaks below 1.3140 level targeting 1.3100, 1.3150 & 1.3020.
Aggressive traders might consider to go short at 1.3220 to 1.3250 level targeting 1.3140 level initially followed by 1.3100, 1.3150 & 1.3020.
Trend Direction: Bullish
Trend Reversal Level: 1.3050
Key Support Levels: 1.3140, 1.3100, 1.3020, 1.3000, 1.2880, 1.2750
Key Resistance Levels: 1.3220, 1.3250, 1.3300, 1.3500