- EUR/USD has shown a minor recovery after better than expected Euro zone data.Eurozone PPI year-over-year came at 1 year high. Industrial inflation came at 3% year-over-year compared to 1.9% increase in the month of Apr. Eurozone retail sales came subdueded on account of rise in energy costs. EU migration deal in European summit has stabilized German government. The pair hits intraday high of 1.16732 and is currently trading around 1.16516.
- US ISM manufacturing index data rose for second consecutive month. The index jumped to a reading of 60.2 compared to forecast of 58.2.
- EUR/USD formed almost triple bottom around 1.1500 and shown a good jump. Any break below 1.1500 confirms minor weakness and decline till 1.1400/1.13600 is likely. Short term bullish invalidation below 1.1500.US 10 year and 2-year bond yield is trading flat.
- On the higher side, near term resistance is around 1.1670 (20-day MA) and any break above will take the pair to next level till 1.1750/1.1800/1.1850.
FxWirePro:EUR/USD Trade Idea It is good to sell on rallies around 1.1670-75 with SL around 1.1725 for the TP of 1.1525.
Resistance
R1- 1.1675
R2 –1.1745
R3- 1.1800
Support
S1- 1.1600
S2-1.1500
S3-1.1400
