- The EUR /USD pair declined on Wednesday as the dollar edged higher on the back of robust U.S. economic data and an easing in tensions over North Korea.
- The dollar maintained its strong stance, seeming to shrug off data on Wednesday showing U.S. housing starts and permits were down sharply in July.
- U.S.homebuilding unexpectedly fell in July amid broad declines in single- and multi-family home construction, suggesting the housing market was struggling to rebound after slumping in the second quarter.
- Housing starts declined 4.8 percent to a seasonally adjusted annual rate of 1.16 million units, the Commerce Department said on Wednesday.
- Investors were also anticipating minutes of the Federal Open Market Committee meeting due later in the day.
- The ongoing weakness is set to continue for this pair as the resistance level at 1.1770 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 1.1726, a break above this level would expose the pair to next resistance level at 1.1770.
- To the downside, immediate support can be seen at 1.1680, a break below at this level will open the door towards next level at 1.1625.
Resistance Levels
R1: 1.1726 (50% Retracement level)
R2: 1.1770 (61.8% Retracement level)
R3: 1.1825 (Aug 14th high)
Support Levels
S1: 1.1680 (38.2% Retracement level)
S2: 1.1625 (23.6% Retracement level)
S3: 1.1600 (Psychological levels)
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