Industry news:
- EUR/USD faded the earlier spike to the vicinity of 1.1290.
- US Core CPI rose more than expected during June.
- ECB said it is ready to easy monetary policy.
- Important resistance at 1.2900 (high volume node)
After climbing as high as the proximity of 1.1290, EUR/USD lost some momentum and it has now receded to the 1.1250/60 band.
Technical view:
As I expected, the EUR did nice rally and did hit our first target from yesterday at the price of 1.1270. Anyway, I found nice rejection of the resistance and still the EUR is trading inside of the downward channel, which is sign of the short-term downtrend. The level of 1.1280 provided strong sell zone and I do expect potential back into the 1.1200 area. Additionally, there is the bear cross on the Stochastic oscillator, which is good clue that aggressive sellers has entered the market.
Important upward reference points:
1.1280 – Previous swing low acting like resistance (orange rectangle)
Important downward reference points:
1.1200 – Support cluster (green rectangle)
My advice is to watch for selling opportunities with the target at 1.1200.
