EURUSD traded bearish on Tuesday and fell almost 60 pips from an opening price of 1.1187. The pair placed low of 1.1131 after opening trade session at 1.1187 prices.
Fundamentals released yesterday were also not in favor of Euro the single currency. According to preliminary data from the German Federal statistics office Destatis, the annual inflation rate is expected to be 0.4% for August, unchanged from July, and slightly lower than the market expectations of a 0.5% rate.
Currently, we have some important economic events that are going to impact EURUSD. I see a strong selling below 1.1130 and I would recommend followers to take buying positions above 1.1130 with minimum stops of 20 – 30 Pips.
NOTE: Investors are likely to wait for NFP due on this Friday before taking any major trading decision.
Today on Wednesday, the investors are recommended to monitor the following events:
• German Unemployment Change
• Euro-Zone Unemployment Rate
• Euro-Zone Consumer Price Index (YoY)
• ADP Employment Change
• Chicago Purchasing Manager
• Pending Home Sales (MoM)
The EURUSD is trading right above a strong support level of 1.1130, we can see the pair is consolidating above this level. Further, low test bar / Doji candles are demonstrating that sellers have exhausted. The reason can be US NFP and Unemployment rate pending on this Friday.
Right now, I would recommend followers to take buying positions only above 1.1130 with minimum stops of 20 – 30 Pips.
Previous Analysis Reference: Trade remained in the profit of 30 pips. (30th Aug 2016)
Daily Trading Range:
1.1225 – 1.1105
Daily Support & Resistance Levels
Pivot Point: 1.1183
– Sell below @ 1.1210
o Take Profit:
1st @ 1. 1130
o Stop Loss 1.1240