Yesterday’s upside target/resistance was hit at 1.4840, and held briefly but was soon overcome as the EUR/USD surged higher after the FOMC announcement out of the US.  Even with the aggressive movements, rates were stalled at the higher resistance levels mentioned in the Nov. 3 post.

The high of the move Wednesday is almost exactly a 61.8% retracement of the downswing starting on Oct. 26.

A drop below 1.4820 is likely to move to 1.4770.  Support beyond is at 1.4740 followed by 1.4700.

A rise above 1.4870 indicates a test of Wed. swing highs at 1.4900.  A break above 1.4920 indicates another move higher.  Targets/resistance at 1.4950 and 1.4980.

Keep in mind the US Unemployment Claims numbers come out at 13:30 GMT. Another market mover generally.

Cory Mitchell, CMT
Chief Market Strategist
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