EUR /USD declined sharply in the US session, after dollar rose across the board as US stocks gained and calmer financial markets enhanced appetite for currencies that offered higher yields. At the moment the pair is trading around 1.0837 levels.
- Further advance is expected to be limited as the pair faces strong resistance at 1.0900 and it is expected to decline further towards 1.0780 and 1.0740 levels in the short term.Therefore it's good to sell this pair on rallies.
- To the upside, the strong resistance can be seen at 1.0900, a break above this level would take the pair towards next resistance level at 1.0968 levels.
- To the downside immediate support can be seen at 1.0817 levels, a break below this level will open the door towards next level at 1.0788.
Recommendation: Go short around 1.0850, targets 1.0780, 1.0740, SL 1.0968
Resistance Levels
R1: 1.0854 (61.8% Retracement level)
R2: 1.0900 (Psychological levels)
R3: 1.0968 (Jan 11th high)
Support Levels
S1: 1.0817 (Daily lows)
S2: 1.0788 (50% Retracement level)
S3: 1.0768 (Jan 7th lows)
