FxWirePro: EUR/USD trades above 1.2000 level, good to buy on dips
EUR/USD is trading high and closed above 1.2000 level on Friday. The pair jumped till 1.20270 at the time of writing after forming a minor bottom at 1.17176 on Dec 12th 2017. The main reason for decline in US dollar is s…
EUR/USD is trading high and closed above 1.2000 level on Friday. The pair jumped till 1.20270 at the time of writing after forming a minor bottom at 1.17176 on Dec 12th 2017. The main reason for decline in US dollar is sharp selloff in US 10 year bond yields from high of 2.499% till 2.40%. It is currently trading around 1.20253.
Market awaits Eurozone PMI manufacturing data for further direction. But major movement can be seen only after release of US ISM manufacturing g PMI (Jan 3rd 2018), FOMC minutes meeting (Jan 4th 2018) and Non-farm payroll (Jan 5th 2018).
EURUSD formed rising wedge pattern and major resistance is around 1.2090 2017 high. Any convincing break above confirms further bullishness and a jump till 1.2170 (50% fibo)/1.2410 (161.8% fibo).
On the lower side, any break below 1.1950 (20- 4H MA) will drag the pair to next level till 1.1898 (55 – 4H EMA)/1.1830/1.1800. Any minor weakness can be seen only below 1.1700.
It is good to buy on dips around 1.2000 with SL around 1.1945 for the TP of 1.209/1.2175.
