EUR/USD, Euro Talking Points:
- EUR/USD[1] price action has returned to a key spot on the chart[2].
- The ECB doesn’t appear overly concerned about spot rates for the single currency: Euro[3] inflation numbers are on the economic calendar for later this week.
- The analysis contained in article relies on price action[4] and chart formations[5]. To learn more about price action or chart patterns, check out our DailyFX Education[6] section.
EUR/USD[7] has returned to a key spot on the chart this morning and, so far, that price has helped to hold the lows. But at this early stage of the matter sellers don’t appear to be deterred, begging the question of for how long might this support zone hold the lows?
This was the same zone of support looked at last week in the pair[8], which held as EUR/USD went on a quick run up to the 1.1825 level. But after a small gap-lower to start this week’s trade and a Doji[9] formation printing on Monday, sellers are taking a more aggressive swing while pushing prices back down to this key spot of support on the chart.
EUR/USD Hourly Price Chart: Return to Key Zone
Chart prepared by James Stanley[10]; EUR/USD on Tradingview[11]
The 1.1736 level is a big one, and when connected to the psychological level just a bit above that at 1.1750, creates a confluent zone on the chart. This zone has had pull on EUR/USD price action going back to July of 2017, when it helped to set over multiple instances in the following five months; only to be-purposed as resistance from June
