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Fed hammer ushers in new cycle....>

EURO-DOLLAR TECHS
EURO-DOLLAR TECHS: Fed hammer ushers in new cycle low:
*RES 4: 1.1303/44 200-dma / Low Jun 25
*RES 3: 1.1286/88 High Jul 11 and Jul 5
*RES 2: 1.1224/40/46 Trendline drawn off the Jun 25 high / 100-dma / cloud top
*RES 1: 1.1193 Low Jul 9
*PRICE: 1.1077 @ 19:37 GMT July 31
*SUP 1: 1.1065 Low Jul 31
*SUP 2: 1.1053 1.0% 10-dma envelope
*SUP 3: 1.1000 Psychological round number
*SUP 4: 1.0864 76.4% retracement of the Jan 2017-Feb 2018 rally
While the Fed trimmed rates by 25bps, a more hawkish outlook on the rate path
prompted the pair to usher in a fresh cycle low of 1.1065. The move rewarded
those who'd continued to play the pair lower on the recent fall through late
July lows. Momentum continues to point toward lower levels, but the pair should
stabilise slightly in the coming sessions. Today's multi-year lows open the
prospect of 1.10, which may prove strong psychological support.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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