FxWirePro: EUR/USD remains bullish as rally continues
Tuesday, May 16, 2017 2:09 PM UTC
- The EUR /USD pair rose on Tuesday as euro's rally was reinforced by dollar losses prompted by allegations that U.S. President Donald Trump disclosed highly classified information to Russia's foreign minister about a planned Islamic State operation.
- A weak manufacturing report from the New York Federal Reserve on Monday also weighed on the greenback.
- Investors are now focusing on when and how the European Central Bank (ECB) could scale back its quantitative easing given the recent strength in the euro zone economy.
- The ongoing upside is set to continue for this pair as the support level at 1.1000 is likely to act as strong barrier to the bears.
- To the upside, the immediate resistance can be seen at 1.1109, a break above this level would expose the pair to next resistance level at 1.1140.
- To the downside, immediate support can be seen at 1.1062, a break below at this level will open the door towards next level at 1.1019.
Resistance Levels
R1: 1.1109 (38.2% Retracement level)
R2: 1.1140 (Nov 4th high)
R3: 1.1166 (23.6 Retracement level)
Support Levels
S1: 1.1062 (50% Retracement level)
S2: 1.1019 (61.8% Retracement level)
S3: 1.1000 (Psychological levels)