EURUSD is bouncing higher after the FOMC meeting. As we mentioned in our previous posts, EURUSD justified a bounce towards the cloud resistance towards 1.06-1.07 as short-term conditions were oversold.
So the first reaction after the FOMC is bearish for the Dollar, therefore bullish for EUR. In the 4 hour chart we see EURUSD testing the Kumo (cloud) resistance. Bulls need to break above this level in order to confirm a short-term reversal signal. A rejection at the cloud resistance would be a bearish sign. Support is at recent lows at 1.05-1.0490 and bulls need to defend this level. A pull back towards 1.05 would be a sign of weakness and a sign that bulls are not strong enough to break the short-term resistance.
