EUR/USD has kicked off the week around 1.16, consolidating last week's falls. Concerns about China's Evergrande, uncertainty about US infrastructure and inflation worries are weighing on sentiment. Fed speakers are eyed.
The EUR/USD pair is trading near the 23.6% retracement of its latest daily decline at 1.1645, the immediate resistance level. The 4-hour chart shows that technical indicators head firmly higher within positive levels, while the pair has advanced beyond a still bullish 20 SMA, favoring a bullish extension on a break above the mentioned Fibonacci resistance level. On the other hand, the 100 and 200 SMAs maintain their bearish slopes far above the current level, suggesting the ongoing advance may be just corrective.
Support levels: 1.1600, 1.1560, 1.1520
Resistance levels: 1.1645, 1.1680, 1.1725
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