Fxwirepro: Eur/usd Rallies Towards 1.1220 Levels, But Reversal Is Likely

  • EUR /USD pair advanced in US session after buyers stepped in, following weak U.S. retail sales and producer prices data suggested U.S. inflation may not be gaining steam and that the Federal Reserve could be slow to raise overnight interest rates.
     
  • U.S. retail sales were flat for July, missing economists' expectations for a modest 0.4 percent rise.
     
  • However, further the gains should be limited as the resistance level at 1.1300 levels should limit upside and bring a decline towards lower levels.
     
  • To the upside, the immediate resistance can be seen at 1.1192, a break above this level would take the pair towards next resistance level at 1.1230.
     
  • To the downside immediate support can be seen at 1.1157 levels, a break below this level will open the door towards next level at 1.1110.

    Resistance Levels

    R1: 1.1192 (50% Retracement level)

    R2: 1.1230 (61.8% Retracement level)

    R3: 1.1300 (Psychological levels)

    Support Levels

    S1: 1.1157 (38.2% Retracement level)

    S2: 1.1110 (23.6% Retracement level)

    S3: 1.1070 (Aug 9th lows)

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

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