EUR/USD: Before Pulling Back, the pair reached bullish target at 1.1280. A break above this level would indicate further upside towards 38% Fibonacci at 1.1790
Economic Perspective
Euro side:
Better than expected economic data from Germany could be behind Monday’s Euro rally. While not officially on the agenda, Greece will undoubtedly cause plenty of frustration and potentially even embarrassment for the host. Chancellor Merkel would have loved to present her fellow world leaders a Greek deal to avert bankruptcy. The plan was scuppered by a defiant Greek Prime Minister Alexis Tsipras earlier this week. The search for a deal before the June 30 deadline carries on.
US Side: As the quote currency in the EUR/USD pair, the better than expected turnaround in NFP report on Friday pushed the pair down which was aligned with out technical pullback forecast.
Technical analysis: As predicted, we saw an expected pullback after the pair danced all the way above and beyond a key resistance level of 23% Fibonacci at 1.1280. Remaining above the Ichimoku cloud with the RSI heading up above the neutrality area, a break above 1.1280 would indicate further upside targeting the 38% Fibonacci at 1.1790.
Trading Idea: Wait for the correction that could pull the pair back to 23% Fibonacci and pivot level of 1.1280. If the pair opens above this level on the next candlestick, that could be your indication for a bullish position towards 1.1478 and 1.1790 in extension.
Alternative Scenario:Below 1.100 look for further drops towards 1.055 and parity.
Where I’m setting my stops and limits:
| Support Levels | Turning Point | Resistance Levels |
|---|---|---|
| 1.1007 | 1.1280 | 1.1790 |
| 1.0550 | 1.1478 |
*Important Note: The support and resistance levels are not suitable for all traders and largely depend on your account size, margin and leverage. Book a private lesson to learn how to personalize your account based on our trading guide.
