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FxWirePro: EUR/USD rallies above 1.1080 but reversal is likely

  • 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)
  • Market Data
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