FxWirePro: EURUSD Trade Idea

EURUSD continues to trade higher for 4th consecutive day and jumped nearly 150 pips from low of 1.12895 made on Jan 24th 2019. The major reason for slight weakness in US dollar is Fed which is expected to pause rate hike in 2019 after aggressive 4 rate hikes in 2018. The global growth slowdown especially Chinese weak industrial earnings which has declined 1.9% from year earlier adding to fears of an economic slowdown in world’s largest economy. The pair hits high of 1.14437 and is currently trading around 1.14219.

Markets eye Fed monetary policy and Brexit Plan B vote today for further direction.

Technically pair has formed a triple bottom near 1.12670 and once again jumped sharply. It shows that markets showing buy interest at lower level.The near term resistance is around 1.14500 (100- day MA) and any violation above targets 1.1500/1.1580 (200- day MA)/1.15920 (300-day EMA).

On the lowerside, major support is around 1.13850 (50- day MA) and any violation below targets 1.1345/1.1300. The pair should break below 1.12670 for further weakness.

It is good to buy on dips around 1.1405-08 with SL around 1.1345 for the TP of 1.15800.

Resistance

R1- 1.1450

R2 - 1.1500

R3- 1.1580

Support               

S1- 1.1385

S2- 1.1340

S3- 1.1300