On 17th May, the Euro traded sideways against the Greenback in brief trading range of 1.1348 – 1.1301. Trading volume was expected to increase on Tuesday as the European banks came back after the holiday but the trading volume remained thin despite release of high impacted economic events from the U.S and Eurozone.  On Wednesday, the investors are recommended to monitor preliminary Inflation figures from Eurozone as well as the FOMC meeting minutes due on U.S session at 2:00 pm (GMT).

Technical Overview:

On Tuesday, the EUR/USD maintained its short trading range of 1.1348 – 1.1301. The pair is consolidating in a defined trading range from consecutive 3 trading days and it has formed a doji candle in the daily time-frame representing a neutral sentiment of investors about the pair. Furthermore, technically the pair has formed a flag pattern in H4 time-frame demonstrating a potential breakout in the pair.

As suggested in previous analysis report, the market still holds above a trend line support level of a 1.1300 and it is likely to stay below a strong resistance level of a 1.1370.  Here, the breakage of 1.1300 support level is likely to lead the market to 1.1253 initially and 1.1210 onward. 

Daily Trading Range:

1.1430 – 1.1210

Daily Support & Resistance Levels

R3: 1.1418

R2: 1.1381

R1: 1.1358

Pivot Point: 1.1321

S1: 1.1284

S2: 1.1261

S3: 1.1224

Trading Recommendation:

  • Sell Below 1.1350
    • Take Profit:
      • 1st @ 1.1290
      • 2nd @ 1.1260
    • Stop Loss 1.1385

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