EUR/USD: slide continues as dollar shines
|EUR/USD Current price: 1.1734
- EUR weak, but within familiar levels.
- Hopes on upcoming US tax reform backing dollar's gains.
The common currency slides against its US rival, slowly but steadily ever since the day begun. Heading into the US opening the pair is trading a couple of pips above last week's low of 1.1720, with no major driver leading the way, but demand for the greenback, fueled by hopes that the US tax reform is ready to pass the Congress. The macroeconomic calendar didn't offer something relevant so far today, although the EU's consumer confidence index for October is still pending of release. Anyway, the fundamental week is set to start on Tuesday, with Markit PMIs for both economies, and with ECB's monetary policy meeting on Thursday being the main event of the week.
Technically, the bearish momentum is strong according to the 4 hours chart, as technical indicators keep heading lower, now nearing oversold readings, as the price extends below its moving averages. The immediate support is 1.1720, followed by an intermediate one at 1.1690, en route to the critical 1.1660 level, where the pair bottomed the last two months. A break below this last seems unlikely short-term, but a daily close below the 1.1700 level will surely grant at least a test of the level.
Support levels: 1.1720 1.1690 1.1660
Resistance levels: 1.1780 1.1825 1.1860
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.