On Tuesday, EURUSD had a quiet and thin volatile day as the pair fell slightly and it traded lower in Uk sessions trading after a strong start to finish at 1.1305, for a small loss of 14 pips or -0.12%. The pair traded in a narrow range of 52 pips with a high price of 1.1303 and a low of 1.1355. The pair closed right at the 61.8% Fibonacci retracement level at 1.13 on Tuesday.
Fundamentals released on Tuesday were also not in favor of Euro and it tumbled the single currency. Flash Manufacturing and Services PMIs came out from all over Europe yesterday with a slightly negative overall bias, especially in the German Services segment. The Eurozone Consumer Confidence Index came in also worse than expected and the slightly bearish U.S. numbers were not enough to change the afternoon trend in the Dollar that pushed the value of the Greenback higher.
Today on Wednesday, the investors are recommended to monitor the following events:
• German Final GDP q/q
• Belgian NBB Business Climate
• Existing Home Sales
Technically, the pair has formed an upward channel and its at it lower end, we need to monitor if it breaks below it or stays above the support level of 1.1275. 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 – 1.1145
Daily Support & Resistance Levels
Pivot Point: 1.1307
– Still Active Buy above @ 1.1270
o Take Profit:
1st @ 1. 1360
2nd @ 1. 1420
o Stop Loss 1.1240