EUR/USD Forecast July 5, 2017, Technical Analysis

The EUR/USD pair initially went sideways on Tuesday, but then broke down a bit to reach towards the 1.1350 level. I believe that there is a much more significant support level in the 1.13 region, so I’m not quite ready to start buying. However, on a bounce in that region I’m willing to serve putting money to work again as we have broken out to the upside. I believe that the 1.15 level above is massive resistance, and a break above there is a significant trading signal as it would be the breaking of the top of a three-year consolidation area. With that in mind, I believe that we are trying to reach that level again, as it quite often takes several attempts to break out of an area that important. Alternately, if we rally from here and find exhaustion, that could be a selling opportunity as well.
The importance of 1.13
Although I don’t think that the 1.13 level is the “be-all end-all” of support, if we did breakdown below what I think that sends this market looking for the 1.12 level, and then eventually the 1.11 handle after that. It will be interesting to see the reaction to the FOMC Meeting Minutes today, and that could be a catalyst to move this market. If we broke above the 1.15 level, I think the next target is the 1.18 handle above, which is longer-term support and resistance on longer-term charts. Ultimately, I think it will be rather choppy, but given enough time I think we will have to make some type of impulsive move that we can pay attention to. Until then, expect short and violent setups. Longer-term, I believe that today could be very important as to where we go next.