Euro at critical level, heading towards 1.1250
Technical Overview: Euro currently trading at 1.1350 made a low at 1.1346 and high at 1.1373 in Asian session as of writing. Technically holding the low at 1.1346 (26th June 2019 low), a break can fall sharply till 1.1300 daily 20MA. As shown in the figure, chart showing a break out which giving us some price action for the day, a break and hold there can extend the fall till 1.1300 and 1.1265 as per chart seen. Overall sell on rise is advised for the day.
Fundamental: EURUSD appreciated by 0.03 percent yesterday. The IFO Business Confidence Index declined to 97.4 in June, better than the 97.3 expected, although its lowest since late 2014. Meanwhile, 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 stimuli, signalling that policymakers would act if inflation doesn’t give signs of picking up.
Suggestion: SELL EURUSD BELOW 1.1350 FOR 1.1320/1300 ELSE BUY ABOVE 1.1425 FOR 1.1480/1500
Important levels to watch:
S1: 1.1325 S2: 1.1305 S3: 1.1285
R1: 1.1393 R2: 1.1415 R3: 1.1435