• The EUR /USD pair declined on Monday as dollar bullish run against euro continued as dollar strengthened on expectations that President-elect Donald Trump will boost U.S. spending.
   
• The risk of faster domestic inflation and wider budget deficits if Trump goes on a spending binge sent dollar and U.S. Treasury higher.
   
• Ahead in the session host of U.S. Federal Reserve officials are scheduled to make appearances, including Dallas Fed President Rob Kaplan, Richmond Fed President Jeffrey Lacker and San Francisco Fed President John Williams.
   
• The ongoing weakness is set to continue for this pair as the resistance level at 1.0850 is likely to act as strong barrier to the bulls and bring a further decline towards lower levels.
   
• To the upside, the immediate resistance can be seen at 1.0783, a break above this level would expose the pair to next resistance level at 1.0850.
   
• To the downside, immediate support can be seen at 1.0716, a break below at this level will open the door towards next level at 1.0699.
  
  Resistance Levels
  
  R1:  1.0783 (50% Retracement level)       
  
  R2: 1.0850 (61.8% Retracement level)    
  
  R3: 1.0900 (Psychological levels)
  
  Support Levels
  
  S1: 1.0716 (38.2% Retracement level)                    
  
  S2: 1.0699 (Jan 3rd lows)
  
  S3: 1.0635 (23.6% Retracement level)