FxWirePro: EUR/USD Trade Idea

Candlestick- doji

EUR/USD has halted its weakness after a huge sell-off. The pair declined more than 200 pips in this week. It hits 14 month low of 1.1300 and shown a minor jump on account of easing trade war between US and China. US and China are planning to negotiate the trade talks in late August. But upside is capped due to upbeat US economic data.

US retail sales came at 0.5% in the month of Jul compared to forecast of 0.1% and core reading came at 0.5% beating forecast of 0.4%. The New york Empire state Manufacturing index came at 25.6 up from previous 22.6.

On the higher side, near term resistance is around 1.14070 (5- day MA) and any break above targets 1.14300/1.1465 (7- day MA). The pair should break above 1.1500 (support turned into resistance) for further upside.

The near term major support is around 1.1300 and any break below targets 1.1250/1.1200.

It is good to buy on dips around 1.1345-50 with SL around 1.1300 for the TP of 1.1465/1.1500.

Resistance

R1- 1.1407
 

R2 - 1.14300
 

R3- 1.1465

Support               

S1- 1.1300

S2- 1.12500

S3- 1.1200