EUR/USD - Euro Remains Undecided Following Last Weeks Activity
Euro closed in an indecisive manner last week with lows of 1.1511 being tapped. Momentum is most definitely bearish and we saw last week's lows being reached once more over the coming few days.
My personal preference is to short the pair into next week if the 1.1650 level is broken on the H4 timeframe. What's more is that the weekly resistance: 1.1725 held firm on Friday, meaning a new bearish leg could well form on the H4 timeframe.
Ultimately, as the US Dollar strengthens, EURUSD could sink to the 1.1450 level which is a critical monthly support level that should most definitely be noted.
The highlighted region of 1.1573 is a strong Fib level to be aware of. Euro May respond to this level in an aggressive manner this week and may cause a pullback to occur in the midst of the trend continuation. The daily closure Monday/Tuesday will paint a clearer picture of what’s ahead.
This week President Trump implements the metals tariffs - as of midnight 01 June - there are fresh concerns for the global economy as a whole as fears of a trade war are reignited. Due to this, there could be a potential flight to safety as rate differentials are knocked down the pecking order.