EUR/USD – EURO Fails to Break Key Resistance
| Support | Resistance |
|---|---|
| S1: 1.1875 | R1: 1.2000 |
| S2: 1.1750 | R2: 1.2075 |
| S3: 1.1460 | R3: 1.2250 |
Essential Insights
The open of the week has seen the EURUSD fall from its recent highs over the last 24 hours, again finding support at the well-tested trend line. An increase in the US Dollar strength has aided this decline, with an expected North Korean missile test over the weekend not taking place. Traders can expect some volatility as the UN considers the new round of sanctions proposed by the US.
Technicals
The EURUSD ended last week with strong momentum and tested the second key resistance level of 1.2075, before retreating. The 15-minute chart shows a short-term change of trend to the downside which has again found support on the trend line. The divergence on the stochastic indicator points to potential weakness in this pair over the coming days, which may see the trend line broken.
Fundamentals
There is no significant news out of Europe this week, and traders need to be on the lookout for Crude Oil Inventories, Core CPI data and Unemployment Claims in the US all released on Thursday. The US Retail Sales numbers on Friday may impact the strength of the US dollar, as will the decision from the UN regarding the sanctions against North Korea.
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