EUR/USD 1.0455 is the major support

By Admiral Markets

USD spiked strongly after FED decided to hike rates. The rate was hiked before Trump was inaugurated so it leaves room for more hikes to come. I personally expect no more than 2 rates in 2017. FOMC statement was hawkish and generally USD could renewed strength.

Technically the EUR/USD should stay below 1.0600 in order for bearish momentum to prevail. At this point we see a bullish regular divergence that is driving the price to the upside in a form of retracement. POC zone for new shorts could be within 1.0550-65 (bearish order block, 23.6). 23.6 is not a strong retracement point but in strong trends, the price tends to retrace no more than 23.6. Targets are 1.0500 and 1.0455. Have in mind that 1.0455 is a major support now and only a 4h close below 1.0450 would signal for a continuation move towards 1.0400 and 1.0345.

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Article by Admiral Markets


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Source: EUR/USD 1.0455 is the major support


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