FxWirePro: EUR/USD key resistance at 1.0688, downside prevails in the short term

The pair found some bullish movement, after bunch of economic data released from Eurozone printed positive figures. In the US session the pair inched higher further towards 1.0627 levels after ISM manufacturing PMI printed negative reading. However, any upward movement for the pair should be limited around 1.0645 levels as the strong resistance located at 1.00648 is likely to defend against the bulls and send the pair further downside.

• Wednesdays' calendar is packed with many economic data and events from European market and later ADP payrolls data and speech from Fed's Yellen from US market, which will add some volatility in the markets. Therefore, traders should trade this pair with caution.
• To the upside, the strong resistance can be seen at 1.0648, a break above this level would take the pair towards next resistance level at 1.0688 levels.
• To the downside immediate support can be seen at 1.0613 levels, a break below this level will open the door towards next level at 1.0578.

Recommendation: Go short below 1.0645, targets 1.0600, 1.0580, SL 1.0720

Resistance Levels

R1: 1.0648 (61.8% Retracement level)

R2: 1.0688 (Nov 25th high)

R3: 1.0700 (Psychological levels)

Support Levels

S1: 1.0613 (50% Retracement level)

S2: 1.0578 (38.2% Retracement level)

S3: 1.0535 (23.6% Retracement level)