• A modest USD uptick prompts some fresh selling.
• Downside remains cushioned amid holiday-thinned trade.
• This week’s important releases would set the near-term tone.
The EUR/USD pair quickly reversed an early European session dip to sub-1.2400 level and rebounded around 25-30 pips from session lows, albeit struggled to build on the rebound.
The pair extended its Asian session retracement slide from 1.2435 level and slipped to an intraday low level of 1.2388 amid a modest pickup in the US Dollar demand, which is now beginning to attract some buyers at lower levels on the back of rising prospects for possibly four Fed rate hike moves in 2018.
Investors, however, seemed reluctant to place any aggressive bets and preferred to wait on the sidelines ahead of this week's key event risks - the release of the FOMC and ECB monetary policy meeting minutes on Wednesday and Thursday respectively.
From a technical perspective, the pair's repeated failures to build on/sustain above the key 1.2500 psychological mark now seems to suggest that a possible near-term might already be in place. Hence, a follow-through weakness, led by some fresh technical selling, now looks a distinct possibility.
Technical levels to watch
On a sustained weakness below the 1.2400 handle, the pair is likely to accelerate the slide towards 1.2370 intermediate support before eventually dropping to 1.2335 zone and the 1.2300 handle. Meanwhile, on the upside, any meaningful bounce might now confront fresh supply near mid-1.2400s, above which bulls might make a fresh attempt towards conquering the 1.2500 handle.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.