EURUSD: Bearish Despite Recovery Attempts!
The outlook in EURUSD has turned neutral at the moment, support comes at 1.1200 level while resistance comes at 1.1293 level. The EURUSD will have to break and hold above 1.1293 level to prevent a return to the downside if seen it will target 1.1368 level. A halt is likely, it may test 1.1293 before attempts to break higher. Anyway; above 1.1368 will extend the corrective recovery to 1.1455 level, further upside, resistance comes at 1.1550 level.
Alternatively; a failure to hold above 1.1293 level on a daily closing basis could mean a return to 1.1200 level. A halt is likely but a cut below support aims 1.1130 level, further down, support comes at 1.1080 level.
Conclusion: The EURUSD sees downside threats below 1.1368 level.
Support: 1.1200, 1.1130, 1.1080, 1.1015
Resistance:1.1293, 1.1368 (main), 1.1455, 1.1550
Note: Minor support comes at 1.1265 level while minor resistance comes at 1.1320 level. A 4- hour closing above 1.1320 is needed to open 1.1370/1.1400 levels. A failure to break above 1.1320 could mean a return to 1.1265, below 1.1265 sees a lower leg below 1.1200 levels.
The U.S will report on the Consumer Price Index (CPI) at 13:30 GMT. The forecast is to rise 0.3%, from 0.1% in the preceding month.
Core CPI is also expected to inch up 0.2%, from 0.1% a month earlier. Above forecast will support the USD, below forecast will support the EUR.