EUR/USD dropped after FED's decision to keep its monetary policy unchanged in yesterday's meeting. It's trading below 1.18 again signaling high selling pressure. The pair has rebounded in the last hours, but this could represent only a retest before resuming its sell-off.
USDX's further growth, a valid breakout above 93.81 should force EUR/USD to drop deeper. Better than expected US data today could support the greenback's appreciation.
A drop and close, stabilization, below the S1 (1.1759) and under 1.1753 could validate the H&S reversal pattern. EUR/USD has come back higher to retest and challenge 1.18 and the upward channel's support level before going down.
The latest false breakouts above the first warning line (wl1) of the descending pitchfork signals high selling pressure in the short term. EUR/USD could drop within the down channel between wl1 and the upper median line (uml).
A valid breakdown below 1.17 - 1.1694 area validate a broader drop towards the 1.1495 level.
- EUR/USD Trading Tips
Sell if the rate drops and closes below 1.1736 today's low. The immediate downside target remains at the 1.1694 and at the upper median line (uml). A drop and stabilization below 1.17 could validate a drop towards 1.1495 level.
We may have a buying signal if EUR/USD continues to grow from here and if it jumps above the R1 (1.1924) level.
