EURUSD likely to push higher until Wednesday

FX:EURUSD   Euro / U.S. Dollar
EURUSD headed lower last week on the open as I suggested and hit support at 1.0534 before bouncing impressively. The initial support I had targeted at 1.0572 gave way but the subsequent drop to 1.0534 set up a most productive LONG trade.
This trade was greatly helped by the rumour of a potential rate hike from the ECB. Markets love rumours and EUR BULLS were all over this one. This isn't likely to happen anytime soon and it will be interesting to see how the ECB react and whether they will act to pour cold water on the rumour or otherwise.
So EURUSD climb 160 pips on the news and several resistance lines were broken.
Studies are now stretched and RSI is weakening on the DTF so we should be headed lower in the first part of the week.
Wednesday is of course the big day and although the Federal Funds rate is almost certain to be raised 25bps to 1.00% the FOMC Statement and Economic Projections could hold the key to the EUR's direction.

Trade idea (before Wednesday).
Wait for a move back to 1.0635 level and see if support here holds. Go LONG if 1.0635 remains in tact.
Under 1.0635 suggests a deeper pullback may be developing.


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