EUR/USD: Having made multi-year highs at 1.2094 price has fallen for the past 3 - 4 weeks making lows at the 1.1700 regions that had previously proved to be a critical area of support for the pair. Furthermore, having previously rejected this zone in the middle of August we have once again formed a reversal pattern and accelerated 150+ pips to the upside stalling at the minor area of resistance at 1.18750. From here we need to be prepared for both scenarios. The previous 3 weeks the pair has been making a series of Lower highs of which Thursday Candle closure is suggesting that we could create a new leg to the downside if the price was to reverse from its current level. Alternatively, we need to be aware, On both Monthly and Weekly timeframes are Moving averages are still filtering to the upside, and the Dailys are approaching a crossover. With USD Core CPI and Core Retail sales due to being released at 13:30 on Friday the 13th, If US data is weaker than expected Euro could spike back to weekly resistance of 1.19250
Previous Post: 1.2094 Remains the multi-Year high (8th Sept) which for now, remains a critical price point for the EUR, especially now a weekly rejection of 1.1925 has been validated.
1.1650 Is the most immediate critical region for the EUR/USD which, if broken, acts as the short selling gateway into the major monthly support area of 1.1450. Alternatively, IF the pair holds above 1.1650 then depending on this weeks closure (29th September), could allow for P.A to creep back up into those multi-year highs.