The pair found some bullish movement, after finding support at 1.0600 levels, and further supported by negative existing homes sales data released from US market. However, any upward for the pair should be limited around 1.0709 levels as the strong resistance located at 1.0700 is likely to defend against the bulls and send the pair further towards downside.
- German GDP, German Ifo Business Climate Index are the key data set to be released from European market on Tuesday, which will add some volatility in the markets. Therefore, traders should trade this pair with caution.
- To the upside, the strong resistance can be seen at 1.0709, a break above this level would take the pair towards next resistance level at 1.0761 levels.
- To the downside immediate support can be seen at 1.0600 levels, a break below this level will open the door towards next level at 1.559.
Recommendation: Go short below 1.0670, targets 1.0620, 1.0560, SL 1.0760
Resistance Levels
R1: 1.0657 (Daily high)
R2: 1.0709 (38.2% Retracement level)
R3: 1.0761 (Nov 19th high)
Support Levels
S1: 1.0630 (Nov 18th lows)
S2: 1.0600 (Daily lows)
S3: 1.559 (April 5th lows)
