WEEKLY OUTLOOK – 1.1262 (1.1313 - 1.1454 ) 1.1520
TREND - UPSIDE SELL
EUR/USD continues to retain downside pressure following its past week losses. Support comes between at the 1.1310 - 1.1350 where a violation will aim at the 1.1300 level. A break below here will target the 1.1263 level. Its daily RSI is bearish and pointing lower suggesting further weakness. On the upside, first resistance resides at 1.1454 level with a break through there opening the door for further upside towards the 1.1520 level. EUR/USD continues to threaten further downside pressure.
Previous Week EUR/USD pair retained its bearish bias and dropped to two-week lows, around mid-1.1350 amid a strong pickup in the US Dollar demand. Optimism over US-China trade lifted the US Treasury bond yields and helped the greenback to post its first positive weekly performance since mid-December. The pair, however, managed to regain some positive traction at the start of a new trading week and recovered a major part of Friday's downfall to the lowest level since January 4.
The uptick lacked any obvious catalyst and could be solely attributed to some re-positioning trade ahead of this week's key event risk - the highly anticipated ECB monetary policy meeting on Thursday. Meanwhile, absent relevant market moving economic releases from the Euro-zone and a bank holiday in the US leaves the pair at the mercy of the USD price dynamics through Monday's trading session.
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