EUR/USD: comments from FBS
EUR/USD touched $1.3400 today after it made a big decline through the short-term support line on Wednesday.
Resistance lies at $1.3480 and $1.3500 ahead of $1.3550. Support lies at $1.3415 (Fibo retracements), $1.3380 (bottom of the daily Cloud, 100-day MA) and $1.3300.
The pair formed a hammer on H4 and got support from the Ichimoku Cloud. We think that euro may recover a bit, but will face resistance soon enough. We’ll be looking to the opportunities to sell EUR/USD in the $1.3480/3500 area with target at $1.3390 and stop at $1.3520.
If euro doesn’t recover and settle below $1.3400, it will become vulnerable for a slide to November lows.
Chart. H4 EUR/USD