EUR/USD – Further Weakness Sees The Euro Break Key Support
|S1: 1.1875||R1: 1.2000|
|S2: 1.1750||R2: 1.2075|
|S3: 1.1460||R3: 1.2250|
The key support zone at 1.1750 failed to contain a fall in the EURUSD early in the week, but with a light start on the fundamental news front, traders may need to wait until Friday’s Non-Farm Employment Change numbers before there is any significant change in this pair. We expect that the EURO will maintain a 50 to 70 pip trading range until the news releases later in the week.
The daily chart displays further weakness in the EURUSD, with the support zone at 1.1750 tested and broken early in this week’s trading.
The 4-hour chart is giving conflicting information, with divergence present on the MACD indicator that is not being backed up by the stochastic oscillator, which generally indicates a weakness in momentum.
The EURO is generally light for European fundamental news this week, with the highlight being ECB President Draghi speaking on Thursday night.
There is plenty of news later in the week on the US side, headed by Fed Chair Yellen speaking on Thursday night, US Unemployment Claims and the all-important Non-Farm Employment Change on Friday night.