EUR/USD: slide continues as dollar shines

Valeria Bednarik FXStreet

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

View Live Chart for the EUR/USD

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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