The euro edged higher after dovish FOMC statement. After the euro group's meeting, the euro is unable to sustain at the higher levels. The pair extends its gains in 3 consecutive days. The pair is approaching monthly resistance at 1.1467. The key trend-change level is seen at 1.1535. As of now, the pair managed to gain 2% this week.

The pair managed to close above 20Wsma found at 1.1060. In case of a daily close above 1.1470, bulls will aim at 1.1700, which we have been recommending the target for a while. In case of a monthly close above 1.1535, the strong bullish momentum ignites in the meantime. After the FOMC meeting, traders doubt September hike which is likely to hurt the USDX. The pair has been reaching higher lows and higher highs in the hourly and daily chart.

In the four-hour chart, the pair managed to breach the double top formation at 1.1380 hit a high at 1.1437. But bulls were unable to close above that double top formation. The nearest resistance is seen at 1.1467 and 1.1490. In any case, the pair is unlikely to breach 1.1490 this week. Intraday resistance is seen 1.1380, 1.1440, and 1.1490. If bulls are unable to close above 1.1380, the next week is likely to be on the downside for 2/3 days. Support is found at 1.1330, 1.1300, and 1.1270.

Trade: Selling below 1.1360 with targets at 1.1340/1.1330, 1.1300, and 1.1280. Safe selling is expected below 1.1330. The selling pressure will accelerate below 1.1270 towards 1.1210.

Buying is available above 1.1400 with targets at 1.1420, 1.1440, 1.1460, and 1.1490.

To contact the author of this analysis, please email- [email protected]