Today, important German Ifo data will impact the price. Positive readings indicate economic progress, which is benign for the Euro. On the US side, services PMI will impact the US dollar. A positive reading will underpin the dollar leading to new lows on this pair. On Friday’s session, the pair fell 150 pips on a closing basis and closed at the lowest point of the day and week. Today, the pair opened on a bullish note lower at 1.2362. The pair has the nearest support at 1.2358. Panic will be triggered below 1.2358. Bears can challenge 200 odd pips on the down side. Considering a weekly close below 1.2350, we can expect 500 odd pips correction on the downside from the longer-term view. The pair has strong, long-term support at 1.2226, 100 pips down from here. Below 1.2226, 1.2045 and 1.1876 are the other multiple support levels. We have been recommending selling on every upswing with the downside initial targets at 1.2300 and 1.2230.
From an intraday view, the prices are closed and trading below 12ema and 35DEMA. But the pair has strong hourly resistance at 1.2400. Above this, 1.2440 will act as another resistance level. On the down side, the pair has support at 1.2358, below this – at 1.2350, 1.2325, and 1.2228. In case if the pair corrects below 1.2358, the selling pressure will increase again. The panic will be triggered below the 1.2350 levels. On an intraday and positional basis, we are recommending sell on every upswing.
Trade: Selling below 1.2350 with the targets at 1.2300 and 1.2275 levels.
The material has been provided by InstaForex Company – www.instaforex.com