There is a pattern of buys on dips
The EURUSD took one final look at the 1.0560 level before the end of the trading day. The pair moved above this level in the NY morning session, later in the afternoon, there was move to 1.0570. The market just traded to 1.0564. The 1.0560 level represents the April 2003 low. Another level to eye below is the 1.0499 level which was the March 2003 low.
We are one day closer to the FOMC decision (Wednesday at 2 PM ET). Between now and then, there will be some position taking (and perhaps squaring up). The market is short. We know that, but we also know the market has been short for a while now.
In the new trading day, should the price dip back below the 1.0560 level there may be a rotation back toward 1.0500. There should be a respectful bid against that level.
If the 1.0560 level does hold, the push high could look toward the 1.0634 and 1.0680 high from Wednesday.
