After a sharp rally upward
from strong resistance of 1.1200 level eur/usd reached strong resistance at
1.1700 and reversed dramatically dropping close to 400 pips in the last three
days. The next logical level of support is surely 1.1200 level. According to
definition of classical technical analysis previous resistance becomes support.
So, if 1.1200 level was resistance, it should act now as support. There are
around 130 pips to go till the target. It will be probably reached by the end
of the week, possibly even tomorrow.
Key fundamental data that
might influence the moves in the pair:
Thursday: USD
Gross Domestic Product Price Index at 12:30 GMT.
Friday: GBP Gross Domestic Product at
08:30 GMT.
I do expect price to
continue going in waves and a rally is expected at current level: 1.1322. Intra-day
support is at an even number of 1.1300. Intra-day resistance is at an even
number of 1.1400.
As always I will repeat
myself by saying that I want to see a reversal pattern at a key level before I
start buying or selling. This in most situations will be a candle pattern that
develops on an hourly or 15 minute chart.
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