The EUR/USD slipped lower on Wednesday as concerns over falling oil prices and possible Britain's exist from euro zone dragged euro down against the dollar.
- The ongoing weakness is set to continue for this pair as the resistance level at 1.1040 is likely to act as strong barrier to the bulls and bring a further decline towards lower levels, therefore it's good to sell this pair around 1.1040 levels.
- Technically the pair has extended its decline below its 21 DMA, the RSI in the 4 hour chart is indicating downwards at 31, meanwhile the 55, 30 and 20 MA's are pointing strong bearish momentum towards lower side. Overall the technical indicators are depicting further downtrend for this pair.
- To the upside, the strong resistance can be seen at 1.081, a break above will take the pair towards next resistance level at 1.1121.
To the downside immediate support can be seen 1.0997 levels, a break below will open gates towards 1.0950 levels.
Recommendation: Go short around 1.1040, targets 1.0950, 1.0900, SL 1.1100
Resistance Levels
R1: 1.1040 (61.8% Retracement level)
R2: 1.081 (Daily high)
R3: 1.1121 (Feb 19th high)
Support Levels
S1: 1.0985 (50% Retracement level)
S2: 1.0950 (38.2% Retracement level)
S3: 1.0900 (23.6% Retracement level)
