EUR/USD Drifts Lower as Political Risks Emerged
EUR/USD opened Monday's trading sessions with an-opposite-bullish-trend after 12 bearish consecutive sessions. The pair has been cornered by strong US economy with US dollar index peeking on Friday at 101.54, and EUR/USD sinking to 1.0577, especially after Fed Chair Yellen noted in her testimony that an increase in interest rates “could well become appropriate relatively soon."
On the other hand, EUR index opened at 86.51 (low), surged at 86.79 highs, currently trading 86.75 awaiting new political issues in France and Italy while US dollar index trading at 101.14. Although EUR/USD managed to score some gains since morning taking advantage of EUR index increase, the pair is currently clocking at high 1.0635, but it still considered a bearish trend taking into consideration strong US economy.
Today Draghi makes an appearance to discuss ECB current and future steps which will give a better outlook on how EUR/USD will react.
Trend: Bearish
key levels to to watch: Daily Pp 1.0587
Resistance: R1 1.0647, R2 1.0692, R3 1.0745
Support: S1 1.0550, S2 1.0517, S3 1.0479
Remark: Although EUR/USD is bullish trend, but is still under the influence of strong US economy, hence the bearish mood. Look forward for Draghi's speech and his key solutions for the EUR on behalf of ECB scheduled at 4:00 PM GMT.
Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.