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FxWirePro: EURUSD forms Cup and Handle pattern, good to go long above 1.1180

Chart Pattern- Cup and Handle pattern

 

Major resistance- 1.1180

 

EURUSD recovered sharply after hitting a low of 1.10802 after Fed monetary policy. The central bank cut interest rates by 25 bps for 3rd time in a row as expected. Fed Chairman Powell ah mentioned in the press conference that monetary policy is in a good place and that only a "material assessment" is needed to pursue further rate cut.  

 

US Personal spending m/m came at 0.2% vs forecast of 0.3% and Core PCE index m/m 0.0% vs estimate of 0.1%. Intial jobless claims 218k vs 215K estimate and continuing claims 4-week average 1686.25K vs 1677.5K.

 

Technically, near term major resistance is around 1.1180 and any minor bullishness only above that level. Any break above the horizontal line of Cup targets 1.1235/1.12885.

 

On the flip side, near-term support is around 1.1140 and any breakthrough that level will drag the pair till 1.1070-80 low made after Fed policy meeting and Oct 25th low.

 

It is good to buy above 1.11800 with SL around 1.1140 for the TP of 1.1235/1.12850.

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