FBS: watching EUR/USD
EUR/USD returned to the positive territory after dipping to $1.3505 during the Asian trading hours and touched $1.3543 retracing 50% of yesterday’s decline. Euro zone’s inflation data came in line with forecasts. US lawmakers keep negotiation on the debt limit as the deadline to raise it comes tomorrow. Everyone’s waiting for the news from America. USD will strengthen if the deal is agreed.
There’s a series of lower lows and highs at H4 chart. Still this move will be viewed as correction to the longer-term upward trend as long as euro stays above $1.3450 (38.2% Fibo). Note that the decline below $1.3470/60 may activate a potential head and shoulders formation with potential target in the $1.33 area.
Support is at $1.3515, $1.3479, $1.3471, $1.3460. Resistance is at $1.3550, $1.3570, $1.3600/05 and $1.3645.
Chart. H4 EUR/USD