FxWirePro: EURUSD trade idea

EURUSD has pared some of its gains after hitting 3-week high around 1.14035. US Fed chairman Powell speech said that US economy will growing strong but slower compared to previous year on account of global uncertainty and US-China trade war. Powell affirms that central bank will take ‘patient approach’ on policy. The pair hits intraday low of 1.13726 and is currently trading around 1.14150.

The yield difference between US and German has declined from 258 basis point to 251 basis point in past 4 trading session which is supporting euro.

On the higher side, any convincing break above 1.1400 confirms minor bullishness and a jump till 1.1435/1.1500. The pair should close above 1.1500 in daily chart for further bullishness.

The near term support is around 1.1365 (55-H EMA) and any violation below targets 1.1345/1.1330 (200- H MA). Major support is around 1.1300.

It is good to buy on dips around 1.13725-30 with SL around 1.1340 for the TP of 1.1500.

Resistance

 R1- 1.1400

R2 -1.1435

R3-1.1500

Support               

S1- 1.1365

S2- 1.1330

S3- 1.1300