FxWirePro: EUR/USD trades weak on Catalonia independence deadline, good to sell on rallies
EUR/USD has declined sharply after hitting high of 1.18750 on Friday. The pair has broken psychological support 1.1800 on account political uncertainty in Spain. Catalonia nears 5- day deadline until Monday morning to te…
EUR/USD has declined sharply after hitting high of 1.18750 on Friday. The pair has broken psychological support 1.1800 on account political uncertainty in Spain. Catalonia nears 5- day deadline until Monday morning to tell Madrid regarding independence. The pair declined till 1.17900 and is currently trading around 1.17915.
US CPI data which was released on Friday showed a slight uptick due to increase in gas prices on account of hurricane. The Euro continued its decline after Bloomberg reports that some ECB policy makers see QE limit of just over 2.5 trillion.
On the higher side, near term resistance is around 1.1900 and any break above will take the pair to next level till 1.19280 (61.8% retracement of 1.20925 and 1.16621)/1.2000.
The near term support is around 1.17980 (100- 4H MA) and any convincing break below will drag the pair down till 1.1768 (55- day EMA)/1.1720. Bearish invalidation only below 1.1660.
It is good to sell on rallies around 1.1820 with SL around 1.1880 for the TP of 1.1725/1.1660.
