The euro also suffered from the greenback’s strength following the “hawkish†meeting minutes by the Fed, and found support at the bottom of the uptrend channel.
EUR USD at the bottom of the uptrend channel – Click image to enlarge
Will it break or bounce at this point?Â
Update: EUR/USD Breaks Below Support on Weak PMIs.
EUR/USD has been trading in an uptrend channel since mid-December. At one point, the pair broke above uptrend resistance and above the 1.3486 to reach higher levels, but then returned back to the channel.
Uptrend support held up in a better manner, and it is also notable that this line began forming before uptrend resistance. And now, the line is tested once again. The pair fell below support at 1.3255 for a short time, but did not breach uptrend support so far.
More levels are 1.3180, 1.3130 and 1.31. On the upside we have 1.3290, 1.3350 and 1.34. For more levels and events, see the EUR/USD forecast.
There are quite a few important releases today: in Europe, flash PMIs will give a forward looking view on the economy, and in the US, jobless claims will provide a snapshot of the job market which the Fed watches closely. There are more events of course.
Further reading:Â EURUSD: Pull-back Within Corrective Decline (Elliott Wave)
