EURUSD pair soared to trade at 1.1255 as the US FED kept the rate unchanged at 0.50% and the Yellen kept the sentiment same that the 2016 rate hike is likely. Initially, the EURUSD bounced higher in initial trading but dragged back towards the end of the session around 1.1200.
Fundamentally. Output growth at German private sector firms slowed further at the end of the third quarter. The Markit Flash Germany Composite Output Index fell from August’s 53.3 to 52.7 and therefore signalled the weakest expansion in activity in almost one-and-a-half years.
Note: ECB meeting today, can cause high volatility in the market especially in EUR Pairs.
Today on Monday, the investors are recommended to monitor the following events:
German Ifo Business Climate
ECB President Draghi Speaks
New Home Sales
EURUSD is directing lower today and we are likely to see moving average crossover. It consolidating around 1.1198, just below a major resistance level at 1.1225. Preceding that interval, the further resistance level is found at 1.41250 &1.136, while a support is found at 1.1185, at 1.1025 and near 1.09.
Daily Trading Range:
1.1325 – 1.1025
Daily Support & Resistance Levels
Pivot Point: 1.1218
– Sell @ 1.1255
o Take Profit:
1st @ 1. 1150
o Stop Loss 1.1250