EUR/USD: join the sellers?
‘Will we be able to join euro sells now?’ – This is, perhaps, one of the questions of the greatest interest for traders these days.
For example, Commerzbank encourages traders to sell on the bounces to $1.2925 (bottom of the daily Ichimoku Cloud) targeting $1.2750 and stopping around $1.3035.
At the beginning of the week there was a rush in USD on the talk that the Fed might start tampering asset purchases. However, weaker-than-expected data from the US and good euro zone’s solid trade balance made the pair loose downward momentum.
As you may see, the pair is still fluctuating around 76.4% Fibo of the advance from April to May ($1.2864). A decline below $1.2850 will make euro move to the levels around $1.2800. Resistance at $1.3030 (this week's high) should remain intact.
Chart. H1 EUR/USD