slipped to 5 month low last Friday as the greenback rose against euro
following stronger than expected non –farm payrolls data. The EUR/USD
pair made modest gain in early European session hitting as high as 1.0793 but was unable to move further on broader weakness, after the US market opened and the pair declined to hit low around 1.0726 shedding almost 40 pips before recovering some ground to trade around 1.0754 levels. Currently the pair is trading around 1.0754 levels with oversold condition and a recovery towards 1.0820 levels can be expected.
Technically in the 4 hour chart the 55, 30 and 20 MA depicts a clear bearish
slope above the current price action, the RSI
is indicating towards downside at 33.
To the upside, the strong resistance can be seen at 1.0830, a break above this level would expose the pair to next resistance level
at 1.0886 levels.
To the downside strong support can be seen at 1.5700, a break below at this level will open the door towards next level at 1.0656.
Recommendation: Go short around 1.0820/1.0800, targets around 1.0740/1.0700, SL 1.0890
Support levels: 1.5700 1.0656 1.0600
Resistance levels: 1.0782 1.0830 1.0886