The currency pair EUR/USD fell on Monday as the U.S. dollar strengthened in anticipation of speech by fed chair Janet Yellen, as well as the inauguration of Donald Trump, which will take place later this week.
During a press conference on Wednesday elected President of the United States did not go into details about how he is going to cut taxes and increase infrastructure costs. We will remind that on the background of these promises, the Euro fell sharply against the American competitor after it became known about a victory of Trump.
Much will depend on trump and his plans for the development of the US economy after its official entry into office on Friday. Overall, however, the dollar is likely to occupy a higher position this year, as the increase in fed interest rates will keep the Euro.
The downward trend in this pair is likely to continue, as the level of resistance at around 1,0692 will serve as a powerful barrier to the bulls and he would bring the pair to lower levels.
On the upper side immediate resistance can be seen at the level of 1,0611, breakthrough on top of which will open doors towards the next barrier of 1.0650 level.
On lower side support is at the level of 1,0561, a break below may lead the pair to the level of 1,0500.
R1: 1,0611 (38.2%)
R2: barrier of 1.0650 (50% retracement)
R3: 1.0692 (61.8%)
S1: 1,0561 (38.2%)
S2: 1,0500 (psychological level)
S3: 1,0452 (maximum of 11 January)