EURUSD pared most of its gains made during past two trading session after dovish Fed.Fed has kept its interest rates unchanged and pledges ‘patience’ stance on further moves.It also mentioned that they are ready to alter balance sheet if needed.Markets eye US non farm payroll data for further direction. The pair hits low of 1.14358 and is currently trading around 1.14431.
US economy is expected to add 167000 jobs in month of Dec compared to previous 312K.Average earnings is expected to at 0.3% MOM and 3.2% YOY and nay adverse effect will drag US dollar down.
Technically pair has formed a triple bottom near 1.12670 and once again jumped sharply.EURUSD upside capped by trend line resistance around 1.15200 (trend line joining 1.1813 and 1.15697) and break above this confirms bullish continuation .A jump till 1.1580 (200- day MA)/1.15920 (300-day EMA).The near term major resistance 1.1450 (100-day MA).
On the lowerside, near term support is around 1.1410 (55- day EMA) and any violation below targets 1.1400/1.1387 (50- day MA)/1.1345/1.1300. The pair should break below 1.12670 for further weakness.
It is good to buy on dips around 1.1435 with SL around 1.1380 for the TP of 1.15800.
