- EURUSD hits fresh 18 month high yesterday after better than expected EU inflation data. The pair jumped till 1.18456 and is currently trading around 1.18168 0.21% lower.
- Eurozone headline CPI came at 1.3% yoy in July in line with expectations but core CPI rose 0.1% to 1.2% yoy highest in four years since Aug 2013.
- The pair has closed well above major resistance 55- month EMA at 1.17650 and closed well above that level. Any close above this level confirms minor trend reversal, a jump till 1.2515 (38.2% retracement of 1.6039 (2008 high) to 1.0339).
- On the lower side, 1.17500 will be acting as near term support and any break below will drag the pair down till 1.16500 (Jul 27th low)/1.16125 (Jul 26th 2017 low). Minor weakness can be seen only below 1.1600.
It is good to buy on dips around 1.1800 with SL around 1.17500 for the TP of 1.200/1.2510.
Resistance
R1- 1.1845
R2 -1.2000
R3- 1.2500
Support
S1-1.17500
S2-1.16500
S3-1.1600
