ForexNewsNow – The euro lost ground vis-a-vis the US dollar on Thursday hitting a low of 1.3384 before closing around 1.3467. This occurred against the backdrop of the Dow Jones losing 391 points (3.51%) yesterday to close at 10733.83 following end of the Federal Reserve’s FOMC meeting, which failed to reassure investors about the prospects of the US economy’s recovery in the near-term.
So far today, the euro is up 0.35% trading at 1.3511 as of around 7:20 A.M. GMT and has hit a low of 1.3453 and a high of 1.3568.
EUR/USD technical snapshot
Drop from 14550 has approached 1st target of thedaily Triple Tops off 1.3968 (1.3381) and currently back in channel off 1.4550 (see graph).
Support area at 1.3484 (break-up hourly), with next levels at 1.3437 (reaction low hourly), ahead of 1.3384/.3381 (current reaction low off year high/ see above) and 1.3360/ .3350 (daily envelope bottom/ 76.4% year low to year high), where pause favored.
If unable to hold, next levels at 1.3288 (daily Bollinger bottom), ahead of 1.3265/ .3240 (daily Starc bottom/ 2nd target off 1.3968): tough on 1st attempts.
Resistance at 1.3573/ .3589 (reaction high hourly/ daily modified Alpha Beta trend top + daily Short Term Moving Average↓), ahead of 1.3601/ .3631 (reaction high hourly/ breakdown hourly), where pause favored.
If unable to cap, next levels at 1.3659 (23.6% 1.4550 to 1.3384), ahead of 1.3695 (breakdown hourly) and 1.3718/ .3724 ((daily Medium Term Moving Average↓/ daily modified Standard Error band top): suspect tough on 1st attempts.
Source: KBC Bank