EURUSD to print fresh intraday losses below 1.3600

The Euro was seen trading higher against the US dollar yesterday post the FOMC meeting minutes. However, the upside was held right around the previously broken trend line, which acted as a resistance for the EURUSD pair. It looks like the pair might be topping in the short term, but instead of selling rallies I think we should consider selling with a break.

There is an expanding triangle forming on the 4 hour chart for the EURUSD pair. There are several support levels around the 1.3600 area, which might act as a pivot zone for the pair. Once the pair trades lower, breaks the mentioned triangle and support area and closes below it, then we can jump into a sell trade. Remember, the pair needs to close below the mentioned support level for this setup to be valid.

Initial target should be around the 1.3540 level, and final target could be around the 1.3500 level. Stop should be above the last high created.

Reviewing yesterday’s events and trades
Yesterday, the FOMC meeting minutes were released, which highlighted the possibility of ending QE soon and increasing interest rates around June 2015. However, the US dollar was impressed by the FOMC minutes. The dollar was up initially, but later lost all the gains against most major currencies, including the Euro, the British pound and the Australian dollar. Later, the Australian employment report was also released, which came as a disappointment and forced the Aussie to move lower against the US dollar.

Fundamental Outlook for the day
Today, during the London session, the BOE interest rate decision will be announced, and is likely to keep it unchanged. This might push the British pound lower against the US dollar in the short term. However, it might recover as the time passes. Later during the NY session, the US initial jobless claims and the wholesale inventories data will be released. These events are less likely to cause swing moves in the US dollar. However, the market sentiment would be mostly the driver in the short term.

This analysis is taken from today’s Daily Market Forecast, which also includes trade opportunities on: GBPUSD, EURGBP, USDCHF, USDCAD, EURJPY, AUDUSD and NZDUSD.
Get it HERE: Vladimir’s Markets Forecast

Trade safe friends. Happy trading!