It was hot week for EUR/USD. Brexit and Italy made it’s direction clear. Italy refused to submit budget proposal in accordance with EU rules. I don’t like their Prime Minister’s tone. It makes me think we will see more conflicts and possibly even sanctions against Italy. So, yes, expect more pressure on EUR.
With such fundamentals upside is limited to 1.1550. As you see on the chart we have 2 sellers zones – 1.14200 and range 1.14600 – 1.15000. Look for rejections from one of these levels and go short with targets 1.11900 and 1.11200. Re-sell level – 1.13000. I see 1.15500 only in the case if market makers will decide to wash out weak retailers before main move and make a false break up.
With such fundamentals upside is limited to 1.1550. As you see on the chart we have 2 sellers zones – 1.14200 and range 1.14600 – 1.15000. Look for rejections from one of these levels and go short with targets 1.11900 and 1.11200. Re-sell level – 1.13000. I see 1.15500 only in the case if market makers will decide to wash out weak retailers before main move and make a false break up.