The EUR/USD pair has declined towards lower levels on Friday as the US dollar gained strength across the board after US Q4 GDP data came better than expected.
- After the data release the pair fell down to hit low at 1.0950 before recovering slightly to trade at 1.0964 levels.
- At the moment the pair is trading around 1.0962 levels and it is expected to decline further towards 1.0900 and 1.0850 levels as the resistance level at 1.1040 is set to hold the bulls from advancing further, and bring a decline towards lower levels in the short term.
- Technically in the 4 hour chart the 55, 30 and 20 MA depicts a clear bearish slope above the current price action, the RSI is indicating towards downside at 37.
- To the upside, the strong resistance can be seen at 1.1000, a break above will take the pair towards next resistance level at 1.1040.
- To the downside immediate support can be seen 1.0950 levels, a break below will open gates towards 1.0900 levels.
Recommendation: Go short around 1.1000, targets 1.0920, 1.0850, SL 1.1100
Resistance Levels
R1: 1.1000 (Psychological levels)
R2: 1.1040 (61.8% Retracement level)
R3: 1.1063 (Daily high)
Support Levels
S1: 1.0950 (38.2% Retracement level)
S2: 1.0890 (23.6% Retracement level)
S3: 1.0843 (Jan 27th lows)
