Share
On Wednesday, Euro headed higher above 1.25 psychological level against USD after minutes from the July 31 - August 1 Fed Reserve's meeting suggested increased possibility for some form of further monetary easing to boost economic growth.
On Thursday, demand for Euro was tempered after weak Chinese manufacturing PMI data raising concerns about a slowdown in the world's fastest growing economy and Euro cut its gains from 1.2553 against USD before the release of Euro-zone PMI data.
The pair is currently quoting at 1.2530 above100-day SMA and almost unchanged from yesterday’s close.
The pair dropped from the ascending trend-line resistance at 1.2560 levels, visible on daily chart. Also, 1.2590 – 38.2% Fibonacci Retracement Level of 1.3486 to 1.2042 move is likely to act as immediate resistance above 1.2560 level.
Should the pair manage to move above 1.2560 – trend-line resistance and 1.2590 – 38.2% retracement level, the pair seems to be set for another leg of up-move towards 1.2670 levels and further towards 1.2740 levels.
On the downside, 100-day SMA near 1.2510 and 1.2500 psychological level seems to provide immediate support for the currency pair.
Should the pair break below 1.2510 – 1.2500 support, 1.2440 level on the downside may now act as very strong support for the currency pair.
Technical indicator - Stochastic Oscillator reading above 80, indicate slight overbought position and hence investors should remain cautious before initiating any fresh long positions.
Intraday Important Technical Levels
Support 1 – 1.2496 Resistance 1 – 1.2559
Support 2 – 1.2463 Resistance 2 – 1.2592
Support 3 – 1.2427 Resistance 3 – 1.2636
Admiral Markets
At any use of the analytical material taken from a site of company Admiral Markets, and the secondary publication on any other resources, the rights to intellectual property for a dealing center «Admiral Markets», the reference to a company site is obligatory.
