FxWirePro: EUR/USD Trade Idea

EURUSD has shown a minor recovery of almost 80 pips from the low of 1.1530 lev el.The recovery is short lived and started to decline after a minor jump above 1.1600. The major reason for broad based buying in USD was due to sell-off in EM currencies especially in South African Rand hits 2 year high at 15.69 as South African GDP came at weaker than expected. The escalating trade tensions between US and major countries like China and Canada.

US ISM manufacturing index released yesterday came at 61.2 for the month of Aug fastest pace in 14 years.

On the lower side, major support is around 1.1525 (daily Kijun-Sen) 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- 1.1525

S2- 1.1500

S3- 1.14600