FxWirePro: EUR/USD rallies above 1.1080 but reversal is likely
Thursday, July 28, 2016 3:45 PM UTC
- The EUR/USD pair to trade in higher range today as dollar was under pressure after the Federal Reserve stopped short of signaling an imminent interest rate hike.
- The U.S. central bank left interest rates unchanged on Wednesday and said the near-term risks to the U.S. economic outlook had diminished and the Fed gave no firm indication it would do so at its next meeting in September.
- The pair hit high at 1.1118 before retreating to trade around 1.1087 levels in the mid-morning US session.
- However, further upside towards higher levels should be limited as the euro is set to weaken against greenback in the short term.
- To the upside, the strong resistance can be seen at 1.1164, a break above will take the pair towards next resistance level at 1.1200.
- To the downside immediate support can be seen at 1.1080 levels, a break below will open the door towards next level at 1.1052.
Resistance Levels
R1: 1.1101 (50% Retracement level)
R2: 1.1125 (61.8% Retracement level)
R3: 1.1164 (July 14th high)
Support Levels
S1: 1.1080 (38.2% Retracement level)
S2: 1.1052 (23.6% Retracement level)
S3: 1.1000 (Psychological levels)