Forex Technical Update

Previous: EUR/USD Building Bullish Bias; 1.33 is Resistance Above 1.3225 (4/24)

 

EUR/USD

EUR/USD

The EUR/USD has been building strength above 1.3150 toward a recent trendline that should meet price at 1.33. However the 1.3225 high from last week was in the way and it needed to clear that to open up further targets to the upside. The market came up and cracked the 1.3225 level during 4/25 European trading, but failed to follow through. The FOMC risk event was just ahead.

At 12:30PM EDT, the FOMC statement came out, and it read very similar to the previous. It basically didn't give the market anything new to go on. The lack of mention for stimulus now further removes the possibility of it, and thus gives the USD some support. Though nothing substantial, it is stopping currencies like the EUR from strengthening against it, and continues USD strength against the JPY.

However by 2:30 with Bernanke's speech underway, the market went against USD strength, and the EUR/USD revives the strength building toward firs the 1.33 resistance from a declining trendline. On any throwback 1.3150 should be a key support. A break below this can shelve the bullish outlook.

The daily chart below shows that above 1.33 and the trendline, we have 1.3380 as the next resistance, then 1.3480, where we might meet with the 200-day SMA as well.

EUR/USD

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Fan Yang CMT is a forex trader, analyst, educator and Chief Technical Strategist of FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.

 

Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis.