Euro fell sharp, heading to 1.11
Technical Overview: Euro currently trading at 1.1190 made a low at 1.1186 and high at 1.1201 in Asian session as of writing. Technically trading below 1.1205 or 200ma and key resistance, sustain below this can see till next support level at 1120 and 1.1085 further. As shown in the figure, chart showing a range pattern again which giving us some price action for the day, a break and hold there can extend the fall till 1.1080 and 1.1050 as per chart seen. Overall sell on rise is advised for the day.
Fundamental: EURUSD depreciated by 0.23 percent yesterday .The leader of the European Central Bank spoke at the ECB Forum on Central Banking in Sintra and said that further interest rate cuts remain part of the central bank’s tools, leaving doors opened for more stimulus, signalling that policymakers would act if inflation doesn’t give signs of picking up. According to the official report, the sharp drop “coincides with an increased uncertainty regarding the future development of the global economy and substantially worsened figures for the German economy at the beginning of the second quarter.”
Suggestion: SELL EURUSD TILL 1.1190 FOR 1.1120/1100 ELSE BUY ABOVE 1.1280 FOR 1.12330/1350
Important levels to watch:
S1: 1.1175 S2: 1.1155 S3: 1.1120
R1: 1.1205 R2: 1.1255 R3: 1.1275