EURUSD makes the case for a base at 1.1000 but caution is still needed for longs
Traders are noting that the bounce in the euro from the open is down to some profit taking from shorts and that those profit takers are in with the bids this morning. Mike had the bulk of the orders listed earlier and adding to those are some bids at 1.0970. There are also stops noted on a break of 1.0950
With the FOMC on Wednesday shorts will be worried that another dovish showing will see the buck sold and that will have them rushing to get out. That will probably weigh more on their minds than the usual bullish excitement we have often seen in the run up to these meetings. While the euro is likely to remain in the back foot any further dips on dollar strength could be used as levels for shorts to take more off the table. That's going to give longs an opportunity to strengthen the lower tech levels
The reason I say this all may give longs false hope is that whatever happens between now and Wednesday may not be reflected in trading after (if there's no material change in things), and so shorts may look to get back into trades after any FOMC risk has been removed
From here we have a series of S&R points along 1.0920 and the March support line at 1.0900
EURUSD daily chart
Looking closer at today's action we can see that 1.1020 is trying to build some support while the area from 1.1040-60 is where the sellers are coming in.
EURUSD 15m chart
Through there it's going to be to be hard work all the way to 1.1100 and beyond. The range so far looks to be 1.0990/1.1000 and 1.1060 so mark those levels as one's to look for a break
