- EUR/USD pared its most of its gains made yesterday . The slight recovery in dollar is due to minor jump US stock futures after a free fall yesterday and gold hits fresh year low at $1256. Markets eye US Conference board consumer confidence to be released today for further direction. The pair hits intraday low of 1.16512 and shown a minor recovery.The upside potential is limited due to the policy divergence between US Fed and ECB is dragging the Euro further down. Short term trend is still weak as long as resistance 1.1850 holds. It is currently trading around 1.1670.
- On the higher side, near term major intraday resistance is around 1.1745 and any convincing break above will take the pair to next level till 1.1800/1.18515 .Minor bullishness only above 1.1850.
- The near term major support is at 1.1622 (200- HMA) and any convincing break below will drag the pair to next level till 1.1600/1.1500.
It is good to sell on rallies around 1.1670-75 with SL around 1.1725 for the TP of 1.1600/1.1500.
Resistance
R1- 1.16720
R2 –1.1750
R3- 1.1800
Support
S1- 1.1620
S2-1.1600
S3-1.1500
