Euro Technical Analysis: EUR/USD, EUR/JPY, EUR/GBP

The single currency has been on the move over the past 24 hours, helped along by a surging US Dollar on the heels of yesterday’s FOMC rate decision. Against both the US Dollar and the Japanese Yen, the Euro has folded over in a very noticeable manner, highlighting potential trend changes in each market. Against the British Pound, however, the Euro ran into an area of support that may be able to support reversal or pullback themes for those that are looking to fade the move.

EUR/USD AS THE BIG MOVER

The US Dollar surge was probably the most noticeable item still driving from that rate decision yesterday. EUR/USD was previously showing a stubborn element of strength, holding above the 1.2000 level for the better part of the past two months.

But, as I had warned on Tuesday, the pair was setting up in a bearish fashion, showing a lower-low to go along with a possible lower-high. That sequence continued and as the Fed spoke yesterday, the bottom fell out of the pair.

EUR/USD TWO HOUR PRICE CHART

EURUSD Two Hour Price Chart

Chart prepared by James StanleyEURUSD on Tradingview

RESISTANCE POTENTIAL – PRIOR SUPPORT – FIBONACCI SUPPORT BELOW

This move is even showing visibly on longer-term charts, which highlights the possibility of this being something more than just a short-term move. With the Fed now opening the door to ‘less loose’ policy, the focus for stimulus may shift to Europe as the European economy still continues to struggle with pandemic-driven challenges.

From the Daily chart below, we can see how 2021 has essentially been a range in EUR/USD so far. Support showed around the 1.1700 handle. But the area that was crossed around 1.2000 was a major spot that didn’t even seem to slow down the sell-off. If bears get bashful and if prices begin to retrace, this could be an operative area to look for that next item of lower-high resistance.

EUR/USD DAILY PRICE CHART

EURUSD Daily Price Chart

Chart prepared by James StanleyEURUSD on Tradingview

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