- The EUR /USD pair declined on Monday as dollar strengthened after stronger-than-expected readings on the U.S. economy, while investors awaited Wednesday's statement from the Federal Reserve’s July meeting for new indications on when the U.S. central bank is likely to begin paring its bond holdings and next raise interest rates.
- The Federal Reserve's two-day meeting starts on Tuesday and ends on Wednesday with a statement at 1800 GMT.
- Data this week including Gross Domestic Product for the second quarter due on Friday will also be a key focus, while the Treasury Department is also due to sell $88 billion in short- and intermediate-dated coupon-bearing supply this week.
- On Monday, Markit's manufacturing and services flash surveys both showed the U.S. data beating expectations.
- Further upside for this pair is expected to be limited as strong resistance level at 1.1683 is set to limit upside and bring decline towards lower levels.
- To the upside, the immediate resistance can be seen at 1.1665, a break above this level would expose the pair to next resistance level at 1.1683.
- To the downside, immediate support can be seen at 1.1627, a break below at this level will open the door towards next level at 1.1588.
Resistance Levels
R1: 1.1665 (38.2% Retracement level)
R2: 1.1683 (Daily high)
R3: 1.1712 (23.6% Retracement level)
Support Levels
S1: 1.1627 (50% Retracement level)
S2: 1.1588 (61.8% Retracement level)
S3: 1.1500 (Psychological levels)
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