EUR/USD: Euro at downward sloping trend resistance

Mario Blascak, PhD Independent Analyst

The EUR/USD recovered from Catalan pro-independence push lower on Friday and managed to gain further after four days of Christmas vacations on Wednesday.

Although the EUR/USD has recovered from lows of $1.1815, the push higher is blocked by downward sloping trendline resistance level near $1.1900.

Currency markets are seen range-bound during three working days separating Christmas vacations from New Year’s Eve with no major economic data releases expected this week.

The US pending home sales and the Conference Board consumer confidence represent major data releases for Wednesday with limited market impact.

While the EUR/USD is limited by a downward sloping trend resistance on the upside, further gains are also limited by the Fast Stochastics moving into the Overbought territory luring sellers instead.

On the lower side, 100-day moving average at $1.1800 is the first hurdle to overcome with 23.6% Fibonacci retracement level of $1.1730 being the next level.

EUR/USD daily chart

Author

Mario Blascak, PhD

Independent Analyst

Dr. Mário Blaščák worked in professional finance and banking for 15 years before moving to journalism. While working for Austrian and German banks, he specialized in covering markets and macroeconomics.

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