Fxwirepro: Eur/usd Neutral in the Near-Term, Scope for Downward Resumption

  • The EUR /USD pair declined on Tuesday as the dollar gained across the board after traders discounted recent weak U.S. economic data and anticipated that the Federal Reserve would prepare markets for an interest rate increase in June in its statement following a policy meeting this week.
  • The Fed is expected to hold interest rates steady after its two-day meeting beginning Tuesday, as it pauses to examine more economic data, but may hint it is on track for an increase in June.
  • The ongoing weakness is set to continue for this pair as the resistance level at 1.1000 is likely to act as strong barrier to the bulls and bring a further decline towards lower levels.
  • To the upside, the immediate resistance can be seen at 1.0911, a break above this level would expose the pair to next resistance level at 1.0954.
  • To the downside, immediate support can be seen at 1.0855, a break below at this level will open the door towards next level at 1.0800.

    Resistance Levels

    R1:  1.0911 (38.2% Retracement level)   

    R2: 1.0954 (50% Retracement level)        

    R3: 1.1000 (61.8% Retracement level)

    Support Levels

    S1: 1.0855 (23.6% Retracement level)                    

    S2: 1.0800 (Psychological levels)

    S3: 1.0754 (March 24th lows)

The material has been provided by InstaForex Company – www.instaforex.com

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