FxWirePro:EUR/USD faces strong support at 1.04600, good to sell on rallies
Major resistance- 1.0578 (3- day EMA). Major support – 1.0500 EUR/USD breaks major support at 1.0500 after Fed hiked interest rates by 25bpbs. It is currently trading around 1.04885. The pair traded at fresh yearly lows …
EUR/USD breaks major support at 1.0500 after Fed hiked interest rates by 25bpbs. It is currently trading around 1.04885.
The pair traded at fresh yearly lows of 1.0468 today after hawkish announcement by Fed yesterday monetary policy.US Fed has made an upward revisions to growth and inflation forecast. It has also raised Federal fund rate to 1.4% in 2017 compared to previous forecast of 1.1%.
EUR/USD is expected to trade lower further after release of strong U.S CPI data .On the lower side, major support stands at 1.0460 (2015 yearly lows) and any violation below targets 1.0400/1.02835 (161.8% retracement of 1.05047 and 1.08700).
The minor resistance stands at 1.05250 (support turned into resistance ) and any break above will take the pair to immediate resistance at 1.0580 (3- day EMA)/1.0630 (7- day MA).The pair should close above 1.0670 yesterday high for further jump till 1.0800.
It is good to sell on rallies around 1.05100 with SL around 1.0580 for the TP of 1.0405/1.0290
