EURUSD maintained bearish momentum for 2nd consecutive trading day on Thursday as the Greenback strengthened on the Fed’s hawkish tone in FOMC minutes. The pair remained bearish on Thursday despite release of worse than expected economic figures from the U.S especially Philly Fed Manufacturing (Actual -1.8 < Forecast 3.2) and U.S Unemployment claims (Actual 278k > Forecast 276k).
On Friday, the investors are recommended to monitor the following events:
- Current Account (EUR)
- German PPI (EUR)
- Existing Home Sales (USD)
- FOMC Member Tarullo Speaks (USD)
On Thursday, the EUR/USD traded at 1.1200 and fell below a suggested support level of 1.1220. As suggested in a previous report, the pair almost hit the suggested target level of 1.1175.
Technically as per RSI (Relative Strength Index), the pair is in oversold territory and it is likely to retrace a bit on Friday. However it is till consolidating trading below 50 periods EMA as well as trend line resistance of 1.3010 (support come resistance). Currently, the EUR/USD is likely to find support at 1.1175 and a resistance at 1.1265. Whereas, the breakage of support level is probable to add further selling until 1.1150 on Firday.
Previous Analysis Reference: The pair is likely to find support at 1.1220 initially and 1.1175 onward. (19th May, 2016)
Daily Trading Range:
1.1300 – 1.1145
Daily Support & Resistance Levels
Pivot Point: 1.1240
- Buy at 1.1150
- Take Profit
- 1st @ 1.1245
- Stop Loss 1.1125
- Take Profit