FxWirePro: EUR/USD breaks support level at 1.1050, bearish in the short term

 

• The pair has broken support level at 1.1050 and is moving downwards to test next support level located at 1.1029, the resistance level 1.1114 is strong and it is expected to hold the bulls from advancing further.

• Today market awaits Fed's FOMC meeting minutes. It is unlikely that, Fed will to raise the interest rate in today's meetings but, we expect a more hawkish statement from Fed's Yellen due to improving US economy.

• The pair is trading around 1.1044 levels and it is expected decline towards 1.1000 and 1.0950 levels in the short term.

• To the upside, the strong resistance can be seen at 1.1081 (23.6% Retracement level), a break above this level would take the pair towards next resistance level at 1.1114 levels.

• To the downside immediate support can be seen at 1.1026 (July 29^th lows), a break below this level will open the door towards next level at 1.1000 levels

Recommendation: Go short below 1.1050, targets 1.1000, 1. 0970, SL 1.1130

Resistance Levels

R1: 1.1050 (38.2% Retracement level)

R2: 1.1081 (23.6% Retracement level)

R3: 1.1114 (July 27^th high)

Support Levels

S1: 1.1026 (July 29^th lows)

S2: 1.1002 (61.8% Retracement level)

S3: 1.0971 (July 24^th lows)