Fxwirepro: Eur/usd Reverses Recent Rally, Bias Back to Downside

  • EUR/USD pair declined in the US session after data showed US factory data expanded in May. 
     
  • U.S. manufacturing activity expanded for a third straight month in May. The Institute for Supply Management (ISM) said its index of national factory activity increased half a percentage point to a reading of 51.3 last month.
     
  • The after the data release pair decline from 1.1180 levels to hit low  at 1.1147 before rebounding slightly to trade at 1.1169 levels.
     
  • Further upside is expected to be limited as the pair faces strong resistance at 1.1233 which should limit upside and bring decline towards lower levels in the short term.
     
  • To the upside, the strong resistance can be seen at 1.1233, a break above will take the pair towards next resistance level at 1.1292.
     
  • To the downside immediate support can be seen at 1.1122 levels, a break below will open gates towards 1.1097 levels.

    Resistance Levels

    R1: 1.1177 (50% Retracement level)

    R2: 1.1200 (Psychological levels)

    R3: 1.1233 (61.8% Retracement level)

    Support Levels

    S1: 1.1122 (38.2% Retracement level)

    S2: 1.1097 (May 30th lows)

    S3: 1.1054(23.6% Retracement level)

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

Tagged with:

  Symbol Bid Ask Spread
EURUSD 1.22170 1.22190 2
  Symbol Bid Ask Spread
GBPUSD 1.38570 1.38600 3
  Symbol Bid Ask Spread
USDJPY 110.780 110.800 2
  Symbol Bid Ask Spread
EURGBP 0.88140 0.88170 3
  Symbol Bid Ask Spread
EURCHF 1.17700 1.17730 3

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