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In yesterday’s Forex Signals we expected EURUSD to fall towards the Support near 1.3650 area and so it did. Price since then has been hovering around waiting for all important Fed policy announcements later in the day.

Let’s quickly look at EURUSD daily chart:

(click to enlarge)

Price broke below the rising Trendline yesterday and tested the support area. Today we may see a pullback back to the Trendline around 1.3800. This is crucial point where price could either resume its rally from October or continue to fall.

Pay close attention to news announcements today and avoid opening new trades close to FOMC statement.

Forex Signal :Once price reach the 1.3800-50 area, look for opportunities in either direction. Wait for price to give you an strong signals as per your own trading methodology and enter trades with less overall risk.

Yesterday we saw BoJ intervening in the markets which now seems to be having less effect on the market. Euro on the other hand also lost ground when fresh doubts over debit crisis plans surfaced.

This week is loaded with fundamental event risks, tomorrow we have US Fed policy announcement and NFP later in the week on Friday.

Lets look at daily chart:

(click to enlarge)

Yesterday price broke and closed below the rising Trendline and it is now facing a minor Trendline which is acting as a support level. Look out for a bounce up back to the previous Trendline at 1.40.

Keeping the fundamental news announcement in mind this week caution is advised. Remember capital preservation is the key to successful trading.

Forex Signal :Look for longs if you see a bounce up from the trendline around 1.3800. If price reaches 1.40 then look for shorts on a pullback.

In case price continues to move lower below the trendline at 1.3800 then look for shorts on the retest of this broken trendline.