EURUSD: Continues To Recover But 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
According to the 1-hour timeframe: Stability below 1.1146 (yesterday’s close) is likely to bring consolidation below that level before the next fall. A sustained breakout above 1.1146 is an early warning for further upside. A daily closing above 1.1162 will target/ challenge 1.1213 levels…
Key data/events which may affect EURUSD today:
Yesterday, the U.S inflation data was negative. With the lack of important economic news today. Unless any FOMC member will surprise us today. The market is likely to continue in the current direction (1.1090/1.1162) before the next move. Here what you need to know about economic data today:
- FOMC Member Harker Speaks at 16:00 GMT.
- FOMC Member Kaplan Speaks at 17:00 GMT.