EURUSD has embarked on a steep downtrend since early 2014, as the Greece crisis evolved (mainly in 2014) and talks of the Fed planning for its first rate hike (in 2015) has transpired. In the event that a deep retracement occurs in the near future, 1.2040 acts as a major magnet/support turned resistance.
Not too much to note on the daily chart other than the fact that we are most likely in a range. The boundaries of the range are 1.1440 on the upside and 1.0470 on the bottom. The range can be further broken into 3 segements, with the middle segment being 1.0815 - 1.1040. As of now, the market is trading in the top segment and a series of bullish bars suggest that we are heading for the top of range at 1.1440.
I believe that the EURUSD will be trading around 1.1315 on the 1st of October. I do not foresee the market trading out of the range for the short time being. For course there is the event risk of September FOMC meeting. However, in my opinion, rate hike or not, the market should continue to trade in the range. This is because even if there were to be a rate hike, it is probably going to be a very small incremental on the Fed Funds Rate. There needs to have other new developments coming out of Europe of US before the market can trade out of the range.