New highs back to March 5th fail to solicit more buying
The expectation was that a break of the FOMC highs would solicit more buying. The price did moved to the highest level since March 5th (to 1.10516), but reversed. The pair has pushed lower with the help of a better US initial claims. Feds Lockhart also said the June, July and September liftoff is still in place (CLICK HERE) and this too may have contributed to a rotation to the downside.
Looking at the hourly chart, the price has moved below trendline support level. The underside of that trendline currently comes in at 1.0993, and this will be by as potential resistance in trading this morning. Stay below and the bears remain in control. The next target on the downside will be the 109 43 level. This is the 38.2% retracement of the move up from the March 23 low and near a low floor area from yesterday.
