EUR/USD Recovers but Still Below 1.1500 Handle
pair has moved within striking distance of moving back above 1.1500
handle, recovering from day's through level of 1.1476 ahead of the
Euro-zone service PMI data.
The pair on Tuesday witnessed a sharp reversal from intraday peak of 1.1616 and dropped back below 1.1500 level on broad USD recovery from the lowest level since Jan. 2015. Investors also seem to lighten their bearish USD positions ahead of the key jobs data scheduled for release on Friday. Friday's jobs report along with today's ISM non-manufacturing index would continue to probe some additional volatility in the pair.
Although the pair on Tuesday, managed to break-through 1.1550 immediate resistance but the momentum above 1.1600 faded, dragging the pair back below 1.1500 mark. Traders would now be eyeing 1.1455-50 immediate support, which if broken seems to extend Tuesday's reversal.
Technical levels to watch
A move back above 1.1500 level might continue to face immediate resistance near 1.1550-55 area, which if conquered decisively seems to assist the pair back towards 1.1600 level. Further, on a sustained trade above 1.1600 mark, the pair seems all set to extend its recent upward trajectory towards its next major resistance near 1.1655-60 region.
Alternatively, weakness below 1.1455-50 immediate support is likely to continue attracting fresh offers, which now seems to drag the pair towards a strong support near 1.1355-50 zone. This 1.1355-50 is an important support confluence, comprising of 20-day SMA and 23.6% Fibonacci retracement level of 1.0522-1.01616 sharp up-move, and hence, a break below this important support might open room for further downfall in the near-term.