EUR/USD price action continues to be driven by the US Dollar
Although US inflation figures came in as expected yesterday, and the initial drive was for lower levels in DXY, the dip was bought. This resulted in rallies in EUR/USD being sold into.
This evening we have Fed. This will be the driving force for the next move.
From a technical perspective, we are expecting further upward pressure in DXY and downward pressure in the major currency pair.
DXY - the one-hour chart highlights bespoke resistance located at 103.16. Projecting a Fibonacci extension tool from this level would highlight the completion of a cypher pattern known as a butterfly at 103.53. Although we are seeing mild selling pressure in morning trade, with higher lows, we look to be forming an ascending triangle pattern. This pattern has a bias to break to the upside.
EUR/USD - Big Picture analysis is for the completion of the BC leg in a large Butterfly formation. The completion of this pattern is located at 1.0360.
The four-hour chart highlights EUR/USD trading within a corrective channel formation. The AB equals CD target of 1.0811 was achieved yesterday. Bespoke resistance is located at 1.0806 today.
Looking at the price action from another angle, we look to have formed an Ending Wedge pattern. On a break of the overnight swing low at 1.0772 and the measured move target is located at 1.0668. This target level is likely to be the focus for day-traders.
This evening we have Fed. This will be the driving force for the next move.
From a technical perspective, we are expecting further upward pressure in DXY and downward pressure in the major currency pair.
DXY - the one-hour chart highlights bespoke resistance located at 103.16. Projecting a Fibonacci extension tool from this level would highlight the completion of a cypher pattern known as a butterfly at 103.53. Although we are seeing mild selling pressure in morning trade, with higher lows, we look to be forming an ascending triangle pattern. This pattern has a bias to break to the upside.
EUR/USD - Big Picture analysis is for the completion of the BC leg in a large Butterfly formation. The completion of this pattern is located at 1.0360.
The four-hour chart highlights EUR/USD trading within a corrective channel formation. The AB equals CD target of 1.0811 was achieved yesterday. Bespoke resistance is located at 1.0806 today.
Looking at the price action from another angle, we look to have formed an Ending Wedge pattern. On a break of the overnight swing low at 1.0772 and the measured move target is located at 1.0668. This target level is likely to be the focus for day-traders.