Currency Analyst since 2010

EUR/USD with Mark Jensen

   By Mark Jensen

EUR/USD keeps trading sideways with a slight upward bias. The market lacks movement ahead of the FOMC meeting (18:00 GMT).

On the upside an important level lies at $1.3015 (50% Fibo of the 2012-2014 advance). A recovery above this level will make the bulls stronger targeting $1.3100. Support is located at the bottom of the short-term channel at $1.2930. A fall below will provoke a decline to $1.2850.

Have a look at how the major banks are positioned:

Credit Suisse placed a limit order to short EUR/USD at $1.3110, with a target at $1.2790 and a stop at $1.3180.

Morgan Stanley also has a sell limit order in place, but a bit lower, at $1.3040 with take profit at $1.2200 and stop loss at $1.3200. This is a longer-term and riskier trade.

Also there are a couple of banks already short on EUR with low take profits (BNP Paribas and Citi which are targeting $1.25 and $1.22 respectively). Barclays has a take profit at $1.2815 and stop loss at $1.3438.

So far I’ve found no recommendations to buy EUR/USD.

Have a nice trading day and may the Force be with you!

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