There’s a potential retracement on EUR/USD’s 4-hour time frame prior to the release of US data in today’s New York session. 

The 38.2% Fib is in line with the 1.3200 major psychological resistance level and it was a former support. It could act as resistance from now on if stochastic crosses down from the overbought region.

However, the oscillator is still moving out of the oversold zone, suggesting that euro bulls are in control at the moment. The release of US data (durable goods orders, CB consumer confidence, new home sales) could spark some volatility and push the pair until 1.3200 before it heads back down.

By Kate Curtis from Trader’s Way