FxWirePro: EUR/USD Trade Idea

EURUSD pared minor gains made yesterday. The pair recovered till 1.16275 and started to decline from that level. The major reason for broad based buying in USD was due to sell-off in EM currencies especially in Argentina Peso. Argentina peso has lost almost more than 20% on Friday and hits low of $41.46 against USD. Trade talks between US and Canada also supporting USD.

The US is set to impose further fresh round of tariff worth $200 billion on China in the first week of September. Markets eye US ISM manufacturing which is to be released for further direction.

On the lower side, major support is around 1.1540 (20- day MA) and any violation below targets 1.1500/1.14656. Any convincing close below 1.1500 confirms further weakness.

The near term resistance is around 1.1630 and any break above targets 1.1660/1.1700/1.17500.

It is good to sell on rallies around 1.1600-025 with SL around 1.1660 for the TP of 1.1500/1.1465.

Resistance

R1- 1.1630
 

R2 - 1.1660
 

R3- 1.1745

Support               

S1- 1.1540

S2- 1.1500

S3- 1.14600