EUR/USD reaches bottom of uptrend channel – break or

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The euro also suffered from the greenback’s strength following the “hawkish” meeting minutes by the Fed, and found support at the bottom of the uptrend channel.

EUR USD at the bottom of the uptrend channel - Click image to enlarge

EUR USD at the bottom of the uptrend channel – Click image to enlarge

Will it break or bounce at this point? 

Update: EUR/USD Breaks Below Support on Weak PMIs.

EUR/USD has been trading in an uptrend channel since mid-December. At one point, the pair broke above uptrend resistance and above the 1.3486 to reach higher levels, but then returned back to the channel.

Uptrend support held up in a better manner, and it is also notable that this line began forming before uptrend resistance. And now, the line is tested once again. The pair fell below support at 1.3255 for a short time, but did not breach uptrend support so far.

More levels are 1.3180, 1.3130 and 1.31. On the upside we have 1.3290, 1.3350 and 1.34. For more levels and events, see the EUR/USD forecast.

There are quite a few important releases today: in Europe, flash PMIs will give a forward looking view on the economy, and in the US, jobless claims will provide a snapshot of the job market which the Fed watches closely. There are more events of course.

Further reading: EURUSD: Pull-back Within Corrective Decline (Elliott Wave)

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Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.