The Euro has continued to decline against US dollar as investors have broadly sold off euro after holding it has safe bet over dollar recently, The US dollar has regained its strength once again after market has calmed down from china's economic woes.
- Euro is set to decline against stronger dollar in the short term. The EUR/USD pair has broken 1.1288 38.2% fib retracement level, the pair is set slip further towards 1.1240 and 1.1180 levels in the short term.
- To the upside, the strong resistance can be seen at 1.1448, a break above this level would take the pair towards next resistance level at 1.1561(Aug 26th high).
- To the downside immediate support can be seen at 1.1240(Aug 21st lows), a break below this level will open the door towards next level at 1.1184 (23.6% Retracement level).
Recommendation: Go short below 1.1320, targets 1.1250, 1.1200, SL 1.1475
Resistance Levels
R1: 1.1361 (50% Retracement level)
R2: 1.1448 (61.8% Retracement level of 1.1716 and 1.1013)
Support Levels
S1: 1.1288 (38.2% Retracement level)
S2: 1.1240(Aug 21st lows)
