The euro is under severe pressure against the U.S dollar after coalition talks between Angela Merkel’s CDU party and the FDP party have broken down, bringing political uncertainty to Germany. After last week’s strong trading gains, the EURUSD pair currently trades around the 1.1730 level. Traders are likely to remain tempered by today’s risk-off trading theme, which is currently dominating intraday sentiment. Financial markets now await a key-note speech from ECB President Mario Draghi and any political news from Germany.
The EURUSD pair is intraday bearish while trading below the 1.1755 technical level. Further downside towards the 1.1710 and 1.1679 support levels looks likely.
Should price action move above the 1.1755 level, further technical buying towards the 1.1807 level remains possible.
