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The EUR/USD is under pressure today after failing again at a key Fibonacci level at 1.3318. The inability to hold on to uptrending Gann angle support at 1.3304 is also a sign of developing weakness. A sustained move through this angle along with another failure at the 50% level at 1.3277 will be signs that the selling is greater than the buying at current price levels.
The main trend is up on the daily chart, but a short-term range has been created at 1.3104 to 1.3324. This makes the retracement zone at 1.3214 to 1.3188 the next major downside target. An uptrending Gann angle at 1.3204 is also a potential downside target.
Daily EUR/USD ChartIt looks as if a downside bias is developing ahead of next week’s Fed meeting. This assessment will be negated if the main top at 1.3324 is violated. This may trigger an eventual rally to 1.3361.
If traders decide to pare positions ahead of next week’s report then look for a sell-off into the close. The daily chart indicates there is more room to the downside than the upside. However, since the main trend is up, a break into 1.3214 to 1.3188 could draw the attention of buyers.
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