An incredible strengthening on the dollar pulled EUR/USD.
An incredible strengthening on the dollar (on the back of a sharp rise in yields) pulled EUR/USD right back to the key near term support around 1.1820, which in effect held firm (only having been breached by a handful of pips). This test continues today and as yet again is hanging on, however the sharp deterioration in yesterday’s session which resulted in a huge bear candle shows that downside pressure is growing once more. This is reflected in the momentum indicators which have all swung lower again. A closing breach of 1.1820/1.1800 would open further weakness with the next support at 1.1715 and then what is the significant November 2017 support at 1.1550. The shows that the market has had a couple of goes at the support around 1.1820 both yesterday and then overnight, both times the market has broadly held up. The mini reaction high at 1.1875 will be watched as an initial resistance with a near term at 1.1890 and then 1.1940. Rallies are still likely to be seen as a chance to sell.