FxWirePro: EUR/USD upside capped by 20- DMA, good to sell on rallies
EUR/USD has shown a decent recovery after a three day continuous selling. The pair hits high of 1.23500 after ECB minutes meeting and once again started to decline from the high. It has declined till 1.22798 and is curre…
EUR/USD has shown a decent recovery after a three day continuous selling. The pair hits high of 1.23500 after ECB minutes meeting and once again started to decline from the high. It has declined till 1.22798 and is currently trading around 1.22965.
ECB minutes showed that it was premature to signal policy normalization due to weak inflation. The policy divergence between Fed and ECB shows that dollar is expected to strength further.
The pair is facing near term resistance of 1.2375 (20- day MA) and break above will take the pair till 1.2442 (61.8% Fibo)/1.2500. Bullish continuation can be seen above 1.2550.
On the lower side, near term support is around 1.2275 and any violation below will drag the pair to next level till 1.2200/1.2165. Minor weakness can be seen only below 1.2200.
It is good to sell on rallies around 1.2300 with SL around 1.2360 for the TP of 1.2200/1.2165.
