The euro has fallen below key weekly technical support against the U.S dollar, after solid economic data from the United States economy provoked another round of buying in the U.S dollar index.
Trading sentiment in the EURUSD pair is expected to remain bearish while political tension in Catalonia worsen, and price-action continues to trade below the euro’s 200-week moving average, at 1.1710.
With today’s economic calendar in the U.S and Europe remaining fairly light, the U.S dollar index is likely to dictate intraday trading.
The next series of higher time frame closes on the four and eight-hour price-candles around the 1.1710 technical level will be crucial for the EURUSD.
Key intraday technical support below 1.1710 is located at the August monthly low, at 1.1662 and the euro’s 100-day moving average, at 1.1654. Below 1.1654, further support is found at 1.1610 and 1.1580.
To the upside, key intraday resistance is located at yesterday daily price-low, at 1.1730 and the euro’s calculated daily pivot point, at 1.1748. Above the 1.1748 level, the 1.1770 level is critical former support now turned resistance.