The Euro finds support at vital level during Wednesday trading

A dovish RBA and weak economic data out of China weighed through the Asian session, with the day ahead a busy one on the economic calendar, bringing the Pound, the EUR and the Dollar into focus. · FX Empire

Christopher Lewis

Updated Wed, Apr 4, 2018, 10:35 PM

The EUR/USD pair rallied a bit over the course of the session on Wednesday, as the uptrend line on the daily chart sits just below. That’s an area where you would expect to see some type of reaction anyway, so this looks to be a bullish sign. That’s not to say that we are going to rally quickly, or that it’s going to be easy, rather that there should be plenty of fight left in this market, and I believe that ultimately, we will get reason enough to find buyers flooding into the market. I like short-term pullbacks as buying opportunities, and don’t have any interest in shorting this market now that we are so close to the uptrend line, and I think that the jobs number on Friday will continue to be a major factor as to where we go next.

If we break down below the uptrend line, that would obviously be a very negative sign, but I don’t think we will do so between now and the jobs number. The 1.2350 level above will be a bit resistant, but if we can break above there think that the market should then go to the 1.24 level next. I anticipate a lot of choppiness will be a mainstay of this market, least between now and Friday. However, I do think that there is much more likelihood of buyers coming in and pick up value than anything else.