FxWirePro: EUR/USD neutral in the near-term, scope for downward resumption
Tuesday, October 4, 2016 2:34 PM UTC
- The EUR /USD pair fell as low as 1.1139 during the early US session as dollar-denominated after upbeat U.S. manufacturing report boosted the view that Federal Reserve is likely to raise interest rates in December.
- Monday's data showed U.S. factories ramped up activity in September fuelled speculation that the Fed would lift rates at its December meeting.
- The ongoing weakness is set to continue for this pair as the resistance level at 1.1252 is likely to act as strong barrier to the bulls and bring a further decline towards lower levels.
- To the upside, the immediate resistance can be seen at 1.1174, a break above this level would expose the pair to next resistance level at 1.1211.
- To the downside, immediate support can be seen at 1.1137, a break below at this level will open the door towards next level at 1.1091.
Resistance Levels
R1: 1.1174 (50% Retracement level)
R2: 1.1211 (61.8% Retracement level)
R3: 1.1252 (Sep 2nd high)
Support Levels
S1: 1.1137 (38.2% Retracement level)
S2: 1.1091 (23.6% Retracement level)
S3: 1.1042 (Aug 5th lows)