The EURUSD retraced back to 1.1270 support area and pulled back up after testing 20 Period EMA. On Tuesday, the pair is likely to test 1.1365. On Monday, the pair dropped below 1.1300 a strong support level but it was expected and suggested in the previous report. Fundamentally, the Greenback tumbled on worse than expected economic figures. Euro as a single currency remained stronger as compared to other pairs. Euro area annual inflation was 0.2% in July 2016, up from 0.1% in June. In July 2015 the rate was 0.2%. Tuesday carry much importance from trading point of view as it is equipped with numerous fundamentals due from Eurozone.
Today on Tuesday, the investors are recommended to monitor the following events:

EUR
• French Flash Manufacturing PMI
• French Flash Services PMI
• German Flash Manufacturing PMI
• German Flash Services PMI
• Flash Manufacturing PMI
• Flash Services PMI
USD
• New Home Sales
• Richmond Manufacturing Index

Technical Overview:

EURUSD is pulling up after retracement and testing EMA 20 at 1.1270. Right now, it is facing a strong resistance at 1.1365 and breakage above this level will open new buying opportunities until 1.1425. Further, it is likely to find a support at 1.1275 & 1.1245. As suggested in the previous report, we are in a profit of more than 50 Pips. “I would like to enter buying above 1.1290 with a stop loss below 1.1250”. Currently, the pair is trading below a strong resistance level of 1.1365 and above this level, the pair is likely to target 1.1425.

Previous Analysis Reference: I would like to enter buying above 1.1290 with a stop loss below 1.1250. (22nd Aug 2016)

Daily Trading Range:
1.1425 – 1.1045

Daily Support & Resistance Levels
R3: 1.1367
R2: 1.1344
R1: 1.1330
Pivot Point: 1.1307
S1: 1.1284
S2: 1.1270
S3: 1.1247

Trading Recommendation:
– Buy above @ 1.1270
o Take Profit:
 1st @ 1. 1360
 2nd @ 1. 1420
o Stop Loss 1.1240

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