FxWirePro: EUR/USD rallies above 1.0640 but reversal is likely
The EUR/USD pair rose higher on Monday as dollar dipped on concerns over overseas geopolitical risks drove investors to safer assets. North Korea on Sunday made what was believed to be a failed missile test launch, incre…
The EUR/USD pair rose higher on Monday as dollar dipped on concerns over overseas geopolitical risks drove investors to safer assets.
North Korea on Sunday made what was believed to be a failed missile test launch, increasing geopolitical risks. Regional tensions have risen over the past weeks as U.S. President Donald Trump has taken a tough rhetorical line with Pyongyang.
Already bruised by worries over North Korea, investor sentiment on dollar took a further hit on weak U.S. economic data.
U.S. retail sales fell for the second straight month in March and consumer prices dropped for the first time in just over a year, a report from the Commerce Department showed on Friday.
However, further upside in this pair is set to be limited as strong resistance at 1.0696 is set to limit upside and bring decline towards lower levels in the short term.
To the upside, the immediate resistance can be seen at 1.0647, a break above this level would expose the pair to next resistance level at 1.0696.
To the downside, immediate support can be seen at 1.0588, a break below at this level will open the door towards next level at 1.0530.
