EUR/USD analysis: nearing Friday's high, short-term bullish

EUR/USD Current price: 1.1666

  • US tax reform woes still weigh on the dollar.
  • Plummeting equities giving the EUR a helping hand.

The EUR/USD pair trades around Friday's close, recovering from an intraday low of 1.1636 posted early Europe, as Pound's decline weighed on the common currency. Nevertheless, the dollar remains unattractive, amid concerns over the tax reform that could be delayed for a year according to the Senate GOP. There were no relevant macroeconomic releases in the EU, and the US calendar will be also empty today, although it will be quite busy for the rest of the week.

The pair trades near its Friday's high of 1.1677, with an immediate resistance being the 1.1690 region, where the pair topped early November. In the 4 hours chart, the price neared a bullish 20 SMA before bouncing, now surpassing a bearish 100 SMA, although the strength upward is well-limited, as the Momentum indicator maintains a bearish slope below its mid-line. The RSI however, has turned higher, now around 62 somehow supporting further gains ahead, moreover on a break above the mentioned resistance. Nevertheless, a stronger recovery is still in doubt as long as the pair remains below the 1.1800 figure in the longer run.

Support levels: 1.1630 1.1590 1.1550                                                                    

Resistance levels: 1.1690 1.1720 1.1750

View Live Chart for the EUR/USD

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