Yesterday EUR/USD traded in the choppy market on the back of the policy meeting of the Federal Open Market Committee. The trading range between 1.1750 and 1.1830 was broken upwards.
Importantly, the currency pair was trading sideways between 1.1750 and 1.1830 for more than 7 trading days. It means that market participants were not ready for a new bearish cycle. Eventually, EUR/USD left the trading range and entered an upward correction phase.
Analyzing a daily chart, we estimate that the single European currency has weakened almost 4% against the US dollar since early June. This is a big price change for the currency market.
Expectations and trading idea
Meanwhile, EUR/USD is making an upward correction from the support level of 1.1750. The area of 1.1880/1.190 is seen as the first interim resistance.
In terms of technical analysis, the resistance area of 1.1880/1.1900 coincides with intraday highs of July 6 and 9 as well as Fibonacci level of 23.6%.
Complex indicator analysis suggests buying opportunities using an intraday trading strategy.
InstaForex Group