On Tuesday, EURUSD broke out of short trading range 1.1242 – 1.1180. It placed a low of 1.1131 and fell 0.71% for the day. The Euro as a single currency lost momentum when German ZEW Economic Sentiment and ZEW Economic Sentiment dramatically fell short of expectations.  Furthermore, the Greenback gained bullish momentum when U.S. retail sales surged to 619K in April to the highest level since the start of 2008.  

On Wednesday, the investors are recommended to monitor the following events:

 ·       German Ifo Business Climate (EUR)

        ·       ECOFIN Meetings (EUR)

        ·       Goods Trade Balance (USD)

       

Technical Overview:

As suggested in previous report, the Euro is still weak against the USD and it is maintaining its descending channel. On Wednesday, EUR/USD is likely to find support at 1.1100 initially and 1.1070 onward. Moreover, the pair has resistance at 1.1190 initially and 1.1215 onward.

Previous Analysis Reference: The breakage of support level is probable to add further selling until 1.1150 on Tuesday.  (24th May, 2016)

Daily Trading Range:

1.1175  – 1.1070

 

Daily Support & Resistance Levels

R3: 1.1260

R2: 1.1244

R1: 1.1202

Pivot Point: 1.1166

S1: 1.1130

S2: 1.1108

S3: 1.1072

 

Trading Recommendation:

         –        Sell at 1.1180

o  
Take Profit: 

§ 
1st  @ 1.1100

§ 
2nd @ 1.1075

o  
Stop Loss 
1.1225