Bears fought back today (on positive US data), driving down the EUR/USD almost 150 pips in just 6 hours. Pair did rise steadily for the first hours of the day but hit a wall of support at 1.4350 that sent exchange rates plummeting. There is currently disagreement among economists whether positive US economic data will help or hurt the US dollar (if you haven’t read my article here on risk aversion and confusion over fundamentals). Today it definitely helped the dollar. However, as long as the pair stays above 1.4170 I am net bullish so I will look for buying opportunities, and sell any bounce off of 1.4350.
Trading Idea: Look for buying opportunities between support zones at 1.4175-1.4200. Long targets at 1.4270 and 1.4345.