- The EUR/USD pair rose higher on Tuesday as dollar slumped after investors grew wary that subdued U.S. inflation and strains in Washington would limit Federal Reserve interest rate moves for the rest of the year.
- The Fed starts a two-day meeting later in the day to discuss its monetary stance and the timing of its long-awaited balance sheet reduction, a plan most likely to be detailed in September.
- The euro rose 0.4 percent to $1.1691 against the dollar. It has gained more than 10.5 percent so far this year and is the best performing G10 currency.
- The ongoing upside is set to continue for this pair as the support level at 1.1622 is likely to act as strong barrier to the bears and push the pair towards higher levels.
- To the upside, strong resistance can be seen at 1.1721, a break above this level would expose the pair to next resistance level at 1.1782.
- To the downside, immediate support can be seen at 1.1675, a break below at this level will open the door towards next level at 1.1622.
Resistance Levels
R1: 1.1711 (Daily high)
R2: 1.1721 (38.2% Retracement level)
R3: 1.1782 (23.6% Retracement level)
Support Levels
S1: 1.1675 (50% Retracement level)
S2: 1.1622 (61.8% Retracement level)
S3: 1.1600 (Psychological levels)
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