On Monday, the EUR/USD and the DXY dollar index futures are traded in a narrow range (near 99.79 for DXY and 1.0900 for EUR / USD). Due to the weekend in the United States (Memorial Day), trading volumes during the American trading session will be low, and a significant change in the situation on the financial market should not be expected. Although in the short term, a sharp increase in volatility is possible, which can be triggered by the release of unexpected news.
The euro, and with it the EUR / USD pair, remain under pressure amid cautious investor attitudes towards the prospects for European assets and the euro. EUR/USD is traded at the beginning of today’s European session near the level 1.0900, in the zone of an important medium-term resistance level ЕМА50 on the daily chart.
The breakdown of the important short-term support level 1.0886 (ЕМА200 on the 4-hour chart) will be a signal for resumption of sales. Below the key resistance levels 1.1020 (ЕМА200 on the daily chart), 1.0980 (ЕМА144 on the daily chart), negative dynamics prevail.
OsMA and Stochastic indicators on the monthly, weekly, daily charts are on the side of sellers.
Fundamental background and technical analysis speak in favor of short positions on EUR / USD.
In an alternative scenario, a correctional increase to the resistance levels 1.0980, 1.1000 is also likely. Growth above the resistance level 1.1020 is unlikely. It is also appropriate to place pending sell orders here.
EUR/USD Daily Chart