FxWirePro: EUR/USD trades below 1.2200 level, dip till 1.2050 likely
EUR/USD continuing its weakness for the third day and declined almost 175 pips from the high of 1.23549 made on Feb 26th 2018. Powell was highly optimistic on US economy and inflation which shows that chance of more than…
EUR/USD continuing its weakness for the third day and declined almost 175 pips from the high of 1.23549 made on Feb 26th 2018. Powell was highly optimistic on US economy and inflation which shows that chance of more than three rate hikes in the year 2018 is possible. The pair hits intraday low of 1.21723 and is currently trading around 1.21760.
Market awaits US ISM manufacturing index and US PCE index data for further direction.
The pair is facing near term resistance of 1.2220 (50- day MA) and break above will take the pair till 1.2265 (23.6% fibo)/1.2320/1.23600. Bullish continuation can be seen above 1.2550.
On the lower side, near term support is around 1.2165 and any violation below will drag the pair to next level till 1.20900/1.2055.
It is good to sell on rallies around 1.2215-20 with SL around 1.2275 for the TP of 1.2090/1.2055.
