The euro has fallen back below the key 1.1770 level against the U.S dollar, after the United States Institute for Supply Management Service Sector PMI improved at its best pace in over twelve years.
Intraday trading sentiment surrounding the EURUSD pair is currently bearish, as U.S economic data starts to improve, and political tensions between Catalonia and Spanish government continue to worsen.
Price-action is currently contained in an increasingly tight trading range, with sellers unable to push price below the 1.1738 level, and buyers unable to gain traction above the 1.1770 level.
Euro traders will wait for the release of the ECB Meeting Minutes later today, which may offer clues on the ECB policy makers latest thoughts on the monetary policy, and the euro’s current exchange rate.
Key intraday technical support for the EURUSD is found at 1.1738 and 1.1710. Once clearly below the 1.1710 level, further declines to 1.1662 and 1.1610 remain likely.
To the upside, key intraday technical resistance is found at 1.1770, the former daily price high, at 1.1785, and the key 1.1800 level. Once above 1.1800, key weekly resistance is found at 1.1823 and 1.1851.
