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Trader, analyst and instructor with a 6-year experience

EUR/USD: waiting for the US data

By Kira Iukhtenko, FX BAZOOKA

The EUR/USD pair has found support at $1.3530 on Wednesday, coming down from the overnight peaks around $1.3575, reached on dovish Bernanke comments.

Daily. As can be seen from the daily chart, euro is trying to return into bullish channel it left on November 7. The rebound is additionally troubled by the 50-day MA that almost coincides with the channel support (currently at $1.3540/35).  The pair is supported by the daily Ichimoku cloud (top around $1.3500). 

Chart 1. Daily EUR/USD

H4. We see that EUR/USD rose above the bearish 4-hour Ichimoku cloud. It is also clearly seen from this timeframe that strong resistance is concentrated in the $1.3535/75 area (Nov. 6 high, 50% Fibonacci from the recent decline, trendline).  

Chart 2. H4 EUR/USD

Economic calendar: There are no important data on the euro zone's agenda on Wednesday. All eyes are on the news from the US - CPI, retail sales, existing home sales and the FOMC October meeting minutes.

Conclusions: For now euro remains under a slight bearish pressure, but a daily close above $1.3545 would become a good buying signal.

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