EUR /USD declined sharply in the early US session, after US Goods Trade Balance printed better than expected figures at -60.50 billion. Immediately after the data release the pair declined almost 70pips.
- At the moment the pair is trading around 1.0940 levels and it is expected to decline further towards 1.0900 and 1.0850 levels as the resistance level at 1.000 is set to hold the bulls from advancing further, and bring a decline towards lower levels in the short term.
- To the upside, the strong resistance can be seen at 1.1000, a break above this level would take the pair towards next resistance level at 1.0050 levels.
- To the downside immediate support can be seen at 1.0921 levels, a break below this level will open the door towards next level at 1.0900.
Recommendation: Go short around 1.0955, targets 1.0900, 1.0850, SL 1.1100
Resistance Levels
R1: 1.0965 (50% Retracement level)
R2: 1.1000 (61.8% Retracement level)
R3: 1.1058 (Dec 15th high)
Support Levels
S1: 1.0921(38.2% Retracement level)
S2: 1.0900 (Psychological levels)
S3: 1.0870 (23.6% Retracement level)
