EURUSD Rally at Risk Ahead of FOMC Meeting Minutes

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Written By: Mohaimenul Jowarder
Reviewed By: Nikolas Papas
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    Summary:
  • U.S unemployment went up by 3.5% and strong NFP data beat the EURUSD bulls, the bullish rally might be at stake.What might happen next?

After rejecting the trend line support at 1.1005, EURUSD bulls started its bullish rally. However, the bulls are having a tough time to break above the minor resistance at 1.1074. Before the closing of the last week, EURUSD bulls ran out of steam after securing a high at 1.1115. As U.S unemployment went up by 3.5% and strong NFP data beat the Euro bulls, the bullish rally might be at stake. However, the EURUSD bulls quickly gained strength from the minor support at 1.1041. If the EURUSD price manages to break above the critical resistance at 1.1078, it might test the high of 4th December at 1.1115. Breaking above this level might require a fundamental catalyst. The cautious investors are eyeing on the FOMC meeting minutes since any dovish statement will reinforce the bullish stance.

On the downside, the EURUSD bears need to clear the minor resistance at 1.1041. Breaking below this level might result in the retest of the support at 1.1024. Any bullish price action signal at 1.1005 support might provide a short term buying opportunity.

On the contrary, breaking below the support at 1.1024 might push the EURUSD price to 1.0981 level. Considering the technical and fundamental parameters, we might see a ranging market until the FOMC meeting minutes. So, it’s better to wait for a clear breakout in the EURUSD pair.

Written By: Mohaimenul Jowarder
Reviewed By: Nikolas Papas

Mohaimenul Jowarder is an active Forex trader since 2011, and has been a Forex analyst since 2013. Over the years, he has contributed to several Forex trading and investing sites including Investing.com and Seekingalpha.com. His analysis and trading style is defined with position trading and price action trading system. His in-depth analysis greatly helps traders to make decisions in complex market condition.

Published by
Written By: Mohaimenul Jowarder
Reviewed By: Nikolas Papas