Topping: After stalling around 1.3830, 61.8% retracement, the EUR/USD retreated faster in reaction to a much expected FOMC statement, which gave USD strength against most major currencies. The EUR/USD slide to 1.35 and cracked it on Friday (11/1). Taking a look at the daily chart, we see that down in the 1.3420-1.3460 area there is support/resistance pivot zone , as well as a rising speedline coming up from July's low of 1.2754.
Upside from support cluster: This week's price action shows the market has flattened if not in bearish reversal. However, in the short-term expect some support above 1.3360. With a neutral to bearish short-term (day to day) outlook that can be turning into the medium term (for a week or 2), the bullish outlook off this support should be limited to 1.3645. The stochastic reading suggests there is oversold condition. The RSI is around 40. If it dips to 30, it would reflect some bearish momentum brewing in the daily time-frame.
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