- The EUR/USD pair dipped on Monday as dollar was lifted by easing tensions in the Korean peninsula after key U.S. officials played down the risk of an imminent war with North Korea.
- Last week, fears of a military showdown between the two nations over Pyongyang's goal to target mainland U.S. with its nuclear weapons caused a rush into Treasuries, yen, Swiss franc and gold.
- The dollar index, which measures the greenback against a basket of six major currencies, edged up 0.25 percent to 93.33, after slipping around 0.3 percent on Friday.
- The ongoing weakness is set to continue for this pair as the resistance level at 1.1855 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 1.1802, a break above this level would expose the pair to next resistance level at 1.1855.
- To the downside, immediate support can be seen at 1.1745, a break below at this level will open the door towards next level at 1.1700.
Resistance Levels
R1: 1.1802 (50% Retracement level)
R2: 1.1855 (61.8% Retracement level)
R3: 1.1908 (Aug 8th high)
Support Levels
S1: 1.1745 (38.2% Retracement level)
S2: 1.1700 (Psychological levels)
S3: 1.1684 (23.6% Retracement level)
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