FxWirePro: EUR/USD key resistance at 1.0058, sell deals are recommended around 1.0990

EUR /USD made a short squeeze against US dollar by hitting high at 1.0993 levels during early European session, at the moment the pair is trading around 1.0975 levels and it is expected to decline towards 1.0900 and 1.0850 levels as the resistance level at 1.0058 is set to hold the bulls from advancing further, and bring a decline towards lower levels in the short term.

• To the upside, the strong resistance can be seen at 1.0007, a break above this level would take the pair towards next resistance level at 1.0050 levels.
• To the downside immediate support can be seen at 1.0921 levels, a break below this level will open the door towards next level at 1.0900.

Recommendation: Go short around 1.0990, targets 1.0900, 1.0850, SL 1.0100

Resistance Levels

R1: 1.0965 (50% Retracement level)

R2: 1.0007 (61.8% Retracement level)

R3: 1.0058 (Dec 15th high)

Support Levels

S1: 1.0921(38.2% Retracement level)

S2: 1.0900 (Psychological levels)

S3: 1.0870 (23.6% Retracement level)