EURUSD: Recovers With Caution!
As long as 1.1090 support holds on a daily closing basis. The EURUSD remains in a recovery mode and further upside couldn’t be ruled out. But the potential upside above 1.1090 should be limited by 1.1162 levels where fall resumption is likely. Above 1.1162 (daily closing basis) will extend the corrective recovery to 1.1213 levels, further upside, resistance comes at 1.1238 levels.
Recovery above 1.1090 is expected to be limited by 1.1162. Above 1.1162 aims 1.1213. Below 1.1127 (daily closing basis) weakens the recovery mode. Below 1.1090 sees bearish move.
On the downside, a failure to take out the 1.1162 levels could mean a return to the 1.1090 levels. A cut through 1.1090 will restore the downside momentum and aim the 1.1050 levels. A halt is likely but below 1.1050 sees further weakness to 1.1000 levels.
In conclusion: The EURUSD sees recovery threats above 1.1090 levels with caution!
Support: 1.1127, 1.1090, 1.1050, 1.1000
Resistance:1.1162, 1.1213, 1.2950, 1.1370
Key data/events which may affect EURUSD today:
- The U.S will report on consumer price inflation at 13:30 GMT. The forecast is to remain unchanged as the previous month at 0.3%.
- The U.S will also report on core consumer price inflation at 13:30 GMT. The forecast is to remain unchanged as the previous month at 0.2%.
- FOMC Member Williams Speaks at 14:00 GMT.