Euro has gained some ground against dollar by reaching as high as 1.0906 levels in the late US session on the view that Federal Reserve would not be able to hike interest rates quickly as forecasted this year following weak US economic data.
- At the moment the pair is trading around 1.0898 levels and it is expected to decline further towards 1.0820 and 1.0750 levels as the resistance level at 1.0950 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 1.0980, 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 1.0873 levels, a break below this level will open the door towards next level at 1.0851.
Recommendation: Go short around 1.0930, targets 1.0840, 1.0770, SL 1.0000
Resistance Levels
R1: 1.0912 (Daily high)
R2: 1.0940 (Jan 19th high)
R3: 1.0980 (61% Retracement level)
Support Levels
S1: 1.0873 (38.2% Retracement level)
S2: 1.0851 (Daily lows)
S3: 1.0811 (23.6% Retracement level)
