the EUR/USD is challenging a key support zone at 1.1180, which is critical decision zone for a bullish reversal or bearish breakout. How will the FOMC meeting minutes push the US Dollar and EUR/USD pair?
The EUR/USD could in fact break into both directions and will probably depend on the FOMC news event later on Wednesday 10th of July in the US. A bullish USD could mean that the EUR/USD breaks lower and aims for 1.11 and 1.10 whereas a bearish USD could translate into a bullish reversal on the EUR/USD with an aim at the Fibonacci targets around 1.1450-1.15.
From a wave perspective, the EUR/USD seems to have completed a bearish ABC wave (purple) but this wave outlook is only valid if price stays above the 100% Fibonacci level and 1.1180 support. For price to confirm this wave pattern, it would need to break above 1.1250 and 1.13 resistance levels with decently strong impulsive price action.
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Good trading, Chris Svorcik