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EUR/USD found support at 1.0800

IronFX UUIIFXBR
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• EUR/USD fell on Tuesday breaking below 1.0865 and giving back all the Friday’s gains following the weak US employment report. The decline was halted at our next support line of 1.0800 (S1). Ahead of the Fed March meeting minutes however I would prefer to take the sidelines for now as a possible dovish minutes could push the rate up towards the 1.0950 (R1) resistance level. On the other hand, if the minutes reassure investors that the Fed is still on track to raise rates faster than market is expecting, this could strengthen the dollar and push the rate towards the 1.0710 (S2) support line. Another reason to keep to the sidelines is that the pair is trading just above the black uptrend line taken from the lows of 13th of March, and a break of that line is needed for another leg down. On the daily chart, the overall trend is still to the downside. EURUSD is printing lower highs and lower lows below both the 50- and the 200-day moving averages.

• Support: 1.0800 (S1), 1.0710 (S2), 1.0650 (S3).

• Resistance: 1.0950 (R1), 1.1045 (R2), 1.1165 (R3) .

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