EURUSD: Consolidates With Upside Bias…
The EURUSD remains on the upside as long as 1.1735 – broken resistance turned support – holds on a daily closing basis. Resistance comes at 1.1783 levels. At this point. The EURUSD will have to break and hold above 1.1783 levels to keep the bullish momentum intact. However; a failure to break above 1.1783 level will bring consolidation below that level.
On the upside, immediate resistance comes at the 1.1783 levels. Above 1.1783 level aims the 1.1850 levels, further upside, resistance comes at the 1.1938 level ahead of 1.1995 level.
Alternatively, below 1.1783 will bring consolidation around 1.1735 levels. A cut-through 1.1735 would delay the bullish move, and bring limited pullback towards 1.1670/1.1605 levels where another rising is very likely. Below 1.1605 should weaken the bullish trend and suggest further weakness.
In conclusion: The EURUSD sees upside threats above 1.1735 levels with risk to 1.1783 levels. Below 1.1735 may delay the bullish move, and suggest corrective pullback to 1.1670/1.1605 levels.
Support: 1.1735, 1.1670, 1.1605, 1.1540, 1.1460
Resistance:1.1785, 1.1850, 1.1938, 1.1995, 1.2138
Key data/events which may affect EURUSD today:
- U.S CB Consumer Confidence (Jul) at 14:00 GMT. The forecast is to fall by 94.5, from 98.1 a month earlier.