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On Friday, EURO jumped against USD after disappointing US jobs report triggered speculations of further monetary stimulus by the Fed Reserve to boost the economy.
On Monday, the pair retraced for the first time in four days, from the 200-day SMA hit on Friday. The pair is currently quoting at 1.2786.
On the upside, 1.2810 – the 200-day SMA, may continue to act as immediate resistance for the currency pair.
Should the pair manage to decisively move above the 200-day SMA, the upward momentum is likely to continue and the pair seems to further appreciate towards 1.2900 levels.
On the downside, 50% Fibonacci Retracement Level near 1.2750 – 1.2760 zone is likely to provide immediate support for the currency pair.
Should the pair break below the 50% retracement level, the pair seems to test 1.2620 – 1.2640 important level, which may now act as strong support on the downside.
1.2750 level on the downside and 1.2810 level on the upside seems to be acting as important pivot points for the currency pair. On break below 1.2750, the pair seems to test 1.2620 – 1.2640 support zone and a move above 1.2810 would increase the likelihood of further appreciation towards 1.2900 levels.
Technical indicator - Stochastic Oscillator (above 90) and RSI (above 70) indicate overbought levels for the short-term and investors should remain cautious before initiating any fresh long positions.
Intraday Important Technical Levels
Support 1 – 1.2754 Resistance 1 – 1.2824
Support 2 – 1.2715 Resistance 2 – 1.2861
Support 3 – 1.2676 Resistance 3 – 1.2894
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