Opinion on the EUR/USD pair

The single currency in the course of the European session played back the lost positions against the US dollar against the backdrop of a partial profit-taking by investors, and also due to the lack of a significant news background in the economic calendar. The situation with the independence of Catalonia from Spain continues to be the main pressure on the single currency.

The situation with the independence of Catalonia remains uncertain, since in his letter to the Spanish government the head of Catalonia Carles Puicdemont did not give an unambiguous answer whether he declared the independence of the region. In turn, the government of Spain promises to deprive Catalonia of certain powers, giving the deadline until Thursday morning, to withdraw the bill on the independence of the region.

Technical analysis: The nearest support level for the pair was found in the area of ​​1,1780, in case of further price reduction and breakdown of this range, support should be expected around 1.1750. The level of resistance is considered in the area – 1,1880-1,1900.

Computer analysis: On the chart of the price of H4, Stochastic Oscilliator behaviours indicate the resale of the pair, in connection with which one should expect the resumption of the growth of the instrument price.

Key recommendations: Despite the rather difficult situation with Catalonia, the central government of Spain will most likely not allow the separation of the region, which will positively affect the single currency and imply buying the pair.

The nearest level for buying is in the area of ​​1.1750, a more conservative entry is considered in the psychology area 1.1700.

Alexander Sivtsov