From the FXWW Chatroom: Conviction – Lower 3.5/5
EURUSD is not immune to the weaker dollar that has plagued the market for the last few sessions, and coupled with risk beginning to soften (and what one would suspect to be subsequent demand for EUR and EUR/crosses) helping to take EURUSD higher. European banks are once again under pressure, fixed income is bid and what can be described as ‘unhealthy’ price action in other markets e.g. commodities suggest to be that the short squeeze in risk is cracking. Given my wider fundamental view in EUR (read: inflation expectations, Eurozone data, political issues, Brexit) it would seem appropriate to add to my lower EURUSD conviction at these levels, with a tight level of negation towards 1.1100. From a pure ECB play we remain both nimble and firmly in waiting mode until Thursday.
Resistance: 1.1050, 1.1070/80, 1.1140
Support: 1.0950/60, 1.0920, 1.0885, 1.0810
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