The euro has slipped back towards the 1.2200 support level against the U.S dollar, after news broke during the European session that Berlin’s SPD party has rejected the proposal of coalition talks to form a Grand Coalition in Germany. Price-action has now settled around the 1.2220 level, after the pair fell sharply from the 1.2270 level, with the daily-low currently in place just above the key 1.2200 level. The U.S dollar index has also continued to firm towards the 90.80 level, adding further pressure to today’s sell-off in the euro currency.
EURUSD trading sentiment remains bullish while trading above the 1.2200 level, further upside towards 1.2250 and 1.2310 still seems possible.
Should price-action on the EURUSD slip below the 1.2200 level, downside support is currently located at the 1.2156 and 1.2093 levels.
