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EURUSD : Testing Resistance at 1.2681, Will there be a Breakout or a Pull Back?

EURUSD : Daily Chart

EURUSD seems like following a downtrend channel on the daily chart and currently testing the key resistance from the falling resistance trend line of the channel. EUR earlier slipped lower as the concerns over the outlook of the global economy continues to weigh after the IMF cut its forecast for global growth. According to the recent economic data, euro zone is not showing growth or recovery and the inflation remains very low below the target of 2%. The moving average pattern on the chart are also showing downtrend continuation, so the pair should decline from the falling resistance trend line.

Investors are now looking for the FOMC meeting minutes which will give guidance on future monetary policy actions.

EURUSD : 4 Hour Chart

On the 4 hour chart, the pair is trying to rise and currently testing the resistance at 1.2681 and facing support from a rising support trend line. So technically or according to the trend, the pair should break out from this resistance. However the US dollar still seems supported as investors are expecting Fed to increase interest rates sooner than earlier scheduled. If Fed delivers hawkish statement on the economy today, we will see the pair declining below the rising support trend line.