- The EUR /USD pair dipped on Monday as the dollar steadied on signs of a tightening U.S. jobs market but the jury is out on whether the currency's strength will last.
- The greenback was also buoyed by comments from National Economic Council director Gary Cohn that the U.S. administration is working on a tax plan that would bring corporate profits back to the United States.
- But the encouraging employment figures and tax plan prospects failed to add further momentum to the dollar on Monday as concerns turned towards the risk of still-subdued inflation.
- However, the ongoing weakness is set to continue for this pair as the resistance level at 1.1845 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 1.1800, a break above this level would expose the pair to next resistance level at 1.1845.
- To the downside, immediate support can be seen at 1.1755, a break below at this level will open the door towards next level at 1.1700.
Resistance Levels
R1: 1.1800 (50% Retracement level)
R2: 1.1845 (61.8% Retracement level)
R3: 1.1890 (Aug 4th high)
Support Levels
S1: 1.1755 (38.2% Retracement level)
S2: 1.1700 (23.6% Retracement level)
S3: 1.1669 (July 28th lows)
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