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)
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)
1.1175 – 1.1070
Pivot Point: 1.1166
– Sell at 1.1180
1st @ 1.1100
2nd @ 1.1075
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Ph.D Scholar and MBA, Business professional with 3 years of experience working as a forex trader and analyst, trading mostly forex, stocks and futures.