FxWirePro: EUR/USD gains some upside momentum but reversal is likely
Thursday, August 25, 2016 1:52 PM UTC
- EUR/USD pair rose towards 1.1293 levels on Thursday, as some investors sold the greenback ahead of a speech by Federal Reserve Chair Janet Yellen this week which will be watched for clues on monetary policy.
- New orders for U.S. manufactured capital goods rose for a second straight month in July. Core capital goods orders advanced 0.5 percent in June better than last month figures at 0.3%.
- After the data release the pair declined slightly towards 1.1286 but recovered to trade at 1.1296 levels.
- However, further upside is expected to be limited as pair finds strong resistance at 1.1397 which should limit upside and bring decline towards lower levels.
- To the upside,immediate resistance can be seen at 1.1329, a break above will take the pair towards next resistance level at 1.1397.
- To the downside, immediate support can be seen 1.1264 levels, a break below will open gates towards 1.1181 levels.
Resistance Levels
R1: 1.1329 (50% Retracement level)
R2: 1.1397 (61.8% Retracement level)
R3: 1.1449 (May 10th high)
Support Levels
S1: 1.1264 (38.2% Retracement level)
S2: 1.1181 (23.6% Retracement level)
S3: 1.1131 (Aug12th low)