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FxWirePro: EUR/USD trades higher on non dovish ECB, good to buy on dips

EUR/USD jumped more than 100 pips from the low of 1.16092 on account of weak US inflation data and broad based US dollar selling. US CPI came at 0.2% for the month of Aug but annual core CPI came at 2.2% compared to forecast of 2.4%.The slight easing US and China trade war also supporting Euro. ECB has kept its rate unchanged as expected and it has left inflation forecast unchanged for 2018,2019 and 2020. ECB is planning to cut bond buying program from 30 billion euros to 15 billion euros and to stop bond buying in 2019. The other major data to be released today is US retail sales.

On the lower side, near term support is around 1.1660 and any violation below will drag the pair down till 1.1600/1.1530/1.1500. Any break below 1.1500 confirms further weakness.

The near term resistance is around 1.1745 and any break above targets 1.1818/1.1845.

It is good to buy on dips around 1.1660 with SL around 1.1600 for the TP of 1.1800/1.1840.

 

 

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