EUR/USD Analysis – Jan 6

The pair tried to reach the target of 1.4500 on Tuesday, but failed, falling back below Monday’s high.  That area, just under 1.4460 provided resistance again later in the day on Tuesday when the pair tried to rally again, but was stalled.  The pair is now mid-range, and a break below short-term support at 1.4340 indicates movement towards recent lows.   Support comes in just above 1.4300, trend line support  (short-term) is at 1.4280 and horizontal support is at 1.4260 and 1.4220.  Target beyond is1.4180.

A push through 1.4380 is likely to retest 1.4400-1.4410.  Resistance is about every 20 pips above this until 1.4500.  Further resistance is expected around 1.4540 and then 1.4575-1.4590.

If  the major news events scheduled for Wednesday come in as surprises, it is likely to be a volatile day.

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Cory Mitchell, CMT
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