The pair continued to trade lower in choppy trading on Monday and it finished way above the intraday low at 1.1187, for a small loss of 10 pips or -0.08%. The cross traded in a narrow daily range of 50 pips with a high of 1.1208 and a low of 1.1158. Further, the pair closed the day well below the 61.8% Fibonacci retracement level at 1.13 on Monday. In the absence of fundamentals from Eurozone, all eyes were on the few U.S. announcements of the day. The PCE Index and Personal Spending were both in line with expectations, but the market’s reaction was still bearish regarding the pair as U.S. stock markets rebounded on Monday.
NOTE: Investors are likely to wait for NFP due on this Friday before taking any major trading decision.
Today on Tuesday, the investors are recommended to monitor the following events:
• Euro-Zone Consumer Confidence
• German Consumer Price Index (MoM)
• German Consumer Price Index (YoY)
• S&P/Case-Shiller US Home Price Index
• Consumer Confidence
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. (25th Aug 2016)
Daily Trading Range:
1.1225 – 1.1145
Daily Support & Resistance Levels
Pivot Point: 1.1183
– Buy above @ 1.1150
o Take Profit:
1st @ 1. 1220
o Stop Loss 1.1130