EUR/USD analysis for September 09 2020 - Re-test of the broken channel in the background and potential for re-selling

Bank of Canada leaves QE program at $5B per week, as expected Highlights of the Bank of Canada rate decision No change in 0.25% overnight rate, as expected Both the global and Canadian economies are evolving broadly in line with the scenario outlined in July The rebound in the United States has been stronger than expected, while economic performance among emerging markets has been more mixed BOC continues to expect the recuperation phase to be slow and choppy as the economy copes with ongoing uncertainty and structural challenges. CPI expected to remain well below target in the near term Repeats that BOC "will hold the policy interest rate at the effective lower bound until economic slack is absorbed so that the 2 percent inflation target is sustainably achieved"

As I discussed in the previous review, the EUR did break the upside trendline yesterday but today I found that we got the re-test of the lower diagonal.

Analyzing the current trading chart of EURI found that there is the reaction from buyers and potential for new re-selling.

Watch for selling opportunities on the rallies with the downside target at 1,1710.

1-Day relative strength performance Finviz

Based on the graph above I found that on the top of the list we got Platinum and Crude Oil today and on the bottom Lumber and VIX

Key Levels:

Resistance: 1,1850

Support levels: 1,1760 and 1,1710