The euro has opened the new trading week lower against the U.S dollar, as the weekend’s Catalonian independence referendum vote has created new political tensions and uncertainty in the eurozone.
Today, the trading sentiment surrounding the EURUSD pair is currently bearish while trading below the 1.1800 level, caution is still advised, as the single currency is known for being resilient while facing adverse fundamental developments.
The economic calendar is full of market moving events for the EURUSD pair today, with PMI manufacturing data from the eurozone and ISM manufacturing data from the United States.
Technically, the euro faces further trading losses below the 1.1770 support level, with intraday selling pressure likely to subside only once above the 1.1800 level.
Key intraday technical support for the EURUSD pair is found at 1.1770, 1.1751 and 1.1732. Key weekly support is found at the pairs 200-week moving average, at 1.1710, once below this level, the euro’s decline can accelerate rapidly towards 1.1660 and 1.1610.
To the upside, the 1.1800 and 1.1823 levels act as strong intraday resistance for the EURUSD. Once above the 1.1823 level, further resistance is found at 1.1851 and the pairs monthly pivot point, at 1.1875.
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