EUR/USD has declined sharply after the price failed to break above the 1.1880 resistance (Fibonacci 50% retracement on September – October decline) last week. Today also the pair traded down on account of political uncertainty in Spain. The pair touched intraday low at 1.1779 and currently trading around 1.1790. The downside correction is underway and could deepen toward the Aug.17 low at 1.1661.
Support: 1.1780, 1.1730/20 & 1.1661 [Aug.17 low].
Resistance: 1.1820, 1.1860/80 & 1.1935.
Trading Tipoff: Any convincing break below 1.1780 will drag the pair down till 1.1720. Bearish invalidation happens only if the price closed below 1.1660 on a daily basis.