FxWirePro: EUR/USD reverses recent rally, bias back to downside

EUR declined against US dollar on Friday after data showed US consumer spending appeared to have gained strength.

• The pair extended its decline from 1.1324 to hit low  at 1.1225 in the early US session.
   
• Further upside is expected to be limited as the pair faces strong resistance at 1. pair is expected to decline towards 1.1230 and 1.1170 levels in the short term.
   
• Technically the pair has extended its decline below its 21 DMA, the RSI in the 1 hour chart is indicating downwards at 35, meanwhile the 55, 30 and 20 MA's are pointing strong bearish momentum towards lower side. Overall the technical indicators are depicting further downtrend for this pair.
   
• To the upside, the strong resistance can be seen at 1.1294, a break above will take the pair towards next resistance level at 1.1377.
• To the downside immediate support can be seen at 1.1229 levels, a break below will open gates towards 1.1153 levels.

Recommendation: Go short around 1.1290, targets 1.1230, 1.1170, SL 1.11370

Resistance Levels

R1: 1.1262 (61.8% Retracement level)

R2: 1.1294 (21 -DMA)

R3: 1.1377 (Feb 11th high)

Support Levels

S1: 1.1229 (50% Retracement level)

S2: 1.1195 (38.2% Retracement level)

S3: 1.1153 (23.6% Retracement level)