EUR surged against defensive US dollar on Thursday after doubts were raised of further rise in US interest rate following weak US data on Wednesday.
- The pair extended its gains from 1.1070 to hit high at 1.1235 in the early US session.
- Further decline is expected to be limited as the pair faces strong support at 1.1130 and it is expected to advance further towards 1.1270 and 1.1350 levels in the short term.
- To the upside, the strong resistance can be seen at 1.1229, a break above will take the pair towards next resistance level at 1.1096.
- To the downside immediate support can be seen at 1.1130 levels, a break below will open gates towards 1.0882 levels.
Recommendation: Go long around 1.1150, targets 1.1230, 1.1300, SL 1.1080
Resistance Levels
R1: 1.1229 (38.2% Retracement level)
R2: 1.1300 (Psychological levels)
R3: 1.1324 (23.6% Retracement level)
Support Levels
S1: 1.1130 (50% Retracement level)
S2: 1.1096 (Oct 23rd lows)
S3: 1.1046 (61.8% Retracement level)
