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

The Euro has retreated from 1.1317 levels and is consolidating above 38.2 fib levels at 1.1223, the pair is set to break resistance level at 1.1287 levels and move towards 1.1340 levels in the short term, as the euro is stronger across the board against US dollar in the short term.

• ADP nonfarm employment change and Factory orders are the key data set to be released from US market, therefore mild to medium volatility is expected.

• 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 1.11361 levels.

• To the downside immediate support can be seen at 1.1220 levels , a break below this level will open the door towards next level at 1.1180

Recommendation: Go long above 1.1220, targets 1.1260, 1.1320, SL 1.1150

Resistance Levels

R1: 1.1285 (50% Retracement level)

R2: 1.1264 (Aug 31stth high)

R3: 1.1304(Aug 28th high)

Support Levels

S1: 1.1220 (38.2% Retracement level)

S2: 1.1180 (Aug 31st lows)

S3: 1.1140 (23.6% Retracement level)