EURUSD Near Term Recovery Capped Close to the Critical Level of 1.1250

EURUSD Price Analysis – March 16

Since trending as high as the 1.1236 level earlier in the day, at the time of writing, EURUSD has now come under some selling pressure and drops the price down to the 1.1172 level. In the second time this month, the US Federal Reserve is cutting the benchmark rate down to 0 percent -0.25 percent. The meeting where the regulator took the rate decision was again unscheduled, as this week’s scheduled meeting is set for earlier.

Key Levels
Resistance Levels: 1.1500, 1.1350, 1.1250
Support Levels: 1.1055, 1.0950, 1.0779

EURUSD Long term Trend: Ranging

In the larger structure, a rebound from 1.0779 low level faced heavy rejection from a 38.2 percent retraction of 1.1500 to 1.0779 at 1.1458 levels, as well as the 5 and 13 moving averages. Development argues that price behavior from the level at long-term trends of 1.0779 is just a corrective downward trend from the level at 1.1500 (high).

Further decline is in favor of retesting the level of 1.0700 (low). Sustained break of 1.1458 level, however, may increase the possibility of a long-term bullish reversal and target a 61.8 percent retraction at 1.1569 level.

EURUSD Short term Trend: Bullish

The intraday bias is initially altered neutrally with a 4 hour RSI signal line cross over past 50. At the downside, the case of a rebound from 1.0779 level has completed at 1.1500 level may be reaffirmed below 1.1055 level.

Intraday bias can be back to the downside for 1.0779 level retesting. However, on the upside over the 1.1250 minor resistance level towards the 1.1500 resistance level will again alter bias to the upside.

Instrument: EURUSD
Order: Buy
Entry price: 1.1095
Stop: 1.1000
Target: 1.1285

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