FxWirePro: EUR/USD upside capped by 23.6% fibo, good to sell on rallies
EUR/USD has shown a modest recovery from the low of 1.16965. The pair jumped till 1.17789 and is currently trading around 1.17629. The pair is waiting for ECB minutes meeting which is to be held today for further directi…
EUR/USD has shown a modest recovery from the low of 1.16965. The pair jumped till 1.17789 and is currently trading around 1.17629. The pair is waiting for ECB minutes meeting which is to be held today for further direction.
ECB has kept its interest rates unchanged in Sep monetary policy meeting and but not mentioned any tweaks to forward guidance. In the current minutes meeting investors will look for clues for QE tapering.
Technically pair is facing strong support at 1.17200 (200- W MA) and any convincing close below that level confirms minor weakness, a decline till 1.16600/1.1600 likely.
On the higher side, near term resistance around 1.17877 (23.6% retracement of 1.20925 and 1.16964) and any break above will take the pair to next level till 1.1833 (34- day MA)/ 1.1870. Overall bullish continuation only above 1.20925.
It is good to sell on rallies around 1.1755-1.1760 with SL around 1.1800 for the TP of 1.16600/1.1600.
