FxWirePro: EUR/USD key support at 1.1220, bearish in the short term

EUR /USD fell back from 1.1244 levels, after failing to break minor resistance at 1.1244 levels. The pair has started to decline and is all set to test support level at 1.1220 levels, as the euro is weaker across the board against US dollar ahead of ECB meeting.

• The European Central Bank is set announce monetary policy decision today with  no policy change is expected from the ECB  with regard to interest rates revision as well as quantitative easing program the data front ISM Non-manufacturing PMI is set to released from US market , therefore Medium to  high volatility is expected in this pair.

• To the upside, the strong resistance can be seen at 1.1304, a break above this level would take the pair towards next resistance level at 1.1348 levels.

• To the downside immediate support can be seen at 1.1224 levels, a break below this level will open the door towards next level at 1.1180

Recommendation: Go short below 1.1250, targets 1.1190, 1.1150, SL 1.1320

Resistance Levels

R1: 1.1244 (Sep 3rd high)

R2: 1.1288 (50% Retracement level)

R3: 1.1304(Sep 1st high)

Support Levels

S1: 1.1224 (38.2% Retracement level)

S2: 1.1180 (Aug 31st lows)

S3: 1.1140 (23.6% Retracement level)