EUR/USD: a mirror downwards?
After reaching 1.2170 at the beginning of the week, EUR/USD corrected downwards and has been in a fluctuating consolidation below that level. Technically, 1.2170-1.2180 is the resistance channel that saw the currency pair come there a week ago. Before that, the last time EUR/USD was that high was in only December 2017 – February 2018. That means this resistance area is very strong and tactically important. It may send EUR/USD downwards to the support of 1.2060, but 1.21 would need to be crossed first. Even if EUR/USD eventually goes upwards to march at 1.22, this downward correction is possible just from a technical “fairness”. The likelihood of a downward scenario increases if Brexit turns out to be a no-deal. So watch Brexit, and watch EUR/USD against the resistance area 1.2170-1.2180 – a bounce off is very possible.
