EUR/USD Dips Over Spain's Political Uncertainty, Eyes On U.S Data
EUR/USD received a punch on Friday's trading sessions as the Catalan election is making major headline news with increasing pace through media. As a result the pair dipped at 1.1816 low this morning but strongly succeeded in climb back at 1.1850 at this moment.
Senior currency strategist at Daiwa Securities in Tokyo crossed wires earlier quoting: “The overall impact of the Catalan vote on the euro and the wider global markets is likely to be limited, however. Catalonia cannot become a sovereign state if no other country recognises its independence. It won’t even be able to have its own currency under such conditions.”
However, it could take more time to know for sure how market will react as events accelerate especially that at the moment it's holidays season. The real impact will start to shape up in the coming days after Tuesday.
Technically, the pair was testing 5-EMA level the past three trading sessions and successfully bouncing off, and with 10-EMA below, currently EUR/USD is still considered in an uptrend motion especially that the dip this morning was targeting 20-EMA with a rebounce.
Fundamentally, U.S is set to release Core Durable Goods Order data along with Personal Spending and Personal Income, and PCE Index Feds favourite intake which should give some heads up on how the pair will trade before this week trading session comes to and end.
EUR/USD technical overview:
Closing price: 1.1873
Target price: None
Resistance levels: 1.1950-70, 1.2010
Support levels: 1.1850+/-, 1.1815*
Trend: Sdwys/Up
Trend reversal price: 1.1815*
Comment The short term trend is shifting up and calls for rallies to push for a breakout over the previous swing highs and could stretch out to 1.1950 as well as 1.2050+. Any corrective dips must hold over 1.1815* + to continue the shifting turn to higher levels. A close under 1.1815* flips the short term trend forces down for a drop under 1.1757-.