The EURUSD has found very heavy resistance in the form of the psychological 1.2000 barrier. The recent strength in the US Dollar has added to the woes of the EURUSD breaking through this key level, and heightened tensions this week in the Pacific region have not left the Euro immune to increased volatility.
The daily EURUSD chart is displaying MACD divergence at top of the ascending channel. This coincides with a key resistance level at 1.2000, and a rather large doji candle at the peak. The 1.2000 level has provided pivotal long-term support, and this strengthened level may now perform a role reversal and act as significant resistance in the coming weeks.
The EURUSD has been steadily climbing for the last few months off the back of Mario Draghi’s positive economic comments. With an upcoming pivotal ECB meeting on the calendar for next Thursday, all eyes will be on the psychological EURUSD level of 1.2000, with weakness already being experienced ahead of the impending news.