The pair sharply slipped backwards from 0.7300 levels to hit low at 1. 0.7156 in early the US Session. However, after negative ISM manufacturing data the pair made modest gains to trade around 0.7182 levels.
- Currency pair is trading below downward trend line in 1 hour chart and pivot point at 0.7172 which suggests further bearish momentum towards downwards in the coming sessions, therefore its good to sell this pair on rallies.
- To the upside, the strong resistance can be seen at 0.7200, a break above this level would take the pair towards next resistance level at 0.7245.
- To the downside immediate support can be seen at 0.7156, a break below this level will open the door towards next level at 0.7104.
Recommendation: Go short below 0.7220, targets 0.7160, 0.7100, SL 0.7280
Resistance Levels
R1: 0.7200 (50% Retracement level)
R2: 0.7245 (61.8% Retracement level)
R3: 0.7300 (Psychological levels)
Support Levels
S1: 0.7156 (38.2% Retracement level)
S2: 0.7104 (23.6% Retracement level)
S3: 0.7066 (Nov 18th low)
