EUR/USD attempting to break higher
The upward retracement seen in EUR/USD this week appears to be continuing apace, with the last candle breaking yesterday’s high and 50% retracement around $1.0877. We would need to see a closed hourly candle above this area to provide a bullish outlook for the morning. However, unless we see a move back above $1.0922, a bearish medium-term outlook remains, with the current upside seeming to be more of a retracement than a reversal.
It is likely this pair will be significantly impacted by the perceived sentiment at this afternoons FOMC meeting, so watch out for positions coming into that announcement. Should we see an hourly close above $1.0877, resistance levels of $1.0900 and $1.0922 would be the next major levels to watch. Support levels to watch are $1.0853, $1.0825 and $1.0789.