EUR/USD extends losses
EUR/USD currency pair came under pressure, following the yesterday’s Fed’s announcement. On Wednesday the pair closed below the $1.3300 mark and today touched $1.3200. Euro zone released a bunch of positive PMI figures on Thursday, but these data didn’t give much support for the pair.
Yesterday we sold the pair from $1.3275 with a target of $1.3175 and a stop at $1.3330. We expect the pair to reach this target in the coming days. Break below this support would confirm the formation of a medium-term top and open the way for a deeper drop. Next support lies at $1.3115/00, $1.3030 and $1.3000.
Euro needs to break above $1.3415 in order to continue the rally, but, given the Fed’s hawkish tone, the chances for that are very low.
Chart. H4 EUR/USD