- EUR/USD has declined sharply till 1.18385 yesterday after better than expected US CPI data. The pair recovered sharply from that till 1.19558 at the time of writing. It has formed a temporary bottom around 1.18230 low made on Aug 31st 2017. It is currently trading around 1.19554.
- Market eyes US retail sales data today for further direction. Retail sales are expected to show a house hold spending increasing a marginal 0.1% in Aug following a 0.6% expansion in month of Jul. This will further decrease the chance of Rate hike by Fed in this year.
- The pair has broken trend line resistance at 19400 (trend line joining 1.2092 and 1.1994) and a minor jump till 1.2000/1.2045 likely. Any bullishness can be seen only above that level. Break above targets 1.2040/1.2090.
- On the lower side, near term intraday support is around 1.1850 (trend line joining 1.13400 and 1.13705) and any break below will drag the pair down till 1.18230 (Aug 31st 2017 low)/1.1800.
- The major resistance is around 1.2100 and any break above confirms bullish continuation, a jump till 1.2200.
It is good to buy on dips around 1.19350-400 with SL around 1.1860 for the TP of 1.2000/1.2090.
Resistance
R1- 1.19600
R2 1.2000
R3-1.2040
Support
S1-1.1900
S2-1.18650
S3-1.182300
