TechnoMeter

Talking Points:

• EUR/USD Technical Strategy: Flat
• Euro Drops to Two-Week Low vs. US Dollar Amid Fed Rate Hike Aftermath
• Risk/Reward, Tactical Considerations Argue Against Taking Short Position

• The Euro is facing swelling selling pressure against the US Dollar in the aftermath of the FOMC monetary policy announcement, with prices dropping to a two-week low. The pair topped below the 1.11 figure having rebounded following the ECB rate decision.
• Near-term support is in the 1.0777-1.0818 area, marked by the 23.6% Fibonacci expansion and the May 27 low. A daily close below this barrier paves the way for a test of the 38.2% level at 1.0602. Alternatively, a move back above support-turned-resistance at 1.0938 opens the door for a challenge of the December 15 high at 1.1060.

H4 price is located above SMA with period 100 (100 SMA) and above SMA with the period 200 (200 SMA) for the ranging within the following key reversal support/resistance levels:

• 1.1059 resistance level located far above 100 SMA/200 SMA in the bullish area of the chart, and
• 1.0520 support level located below 100 SMA/200 SMA in the bearish area of the chart.

RSI indicator is estimating the bearish reversal to be started in the near future with the secondary ranging market condition. Descending triangle pattern was formed by the price with 1.0831 support level to be crossed for good possible breakout.

• If the price will break 1.1059 resistance level so the bullish trend will be continuing without ranging.
• If price will break 1.0831 support so the reversal of the price movement from the primary bullish to the primary bearish market condition will be started.
• If price will break 1.0520 support so we may see good bearish breakdown.
• If not so the price will be ranging within the levels.

Resistance	Support
1.1059	1.0831
N/A	1.0520

• Recommendation to go short: watch close H4 price to break 1.0831 support level for possible sell trade
• Recommendation to go long: watch close H4 price to break 1.1059 resistance level for possible buy trade
• Trading Summary: ranging

SUMMARY : ranging on bearish reversal

TREND : waiting for direction


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