EUR/USD touched to a fresh 1-Week low of 1.1753 after the ZEW survey disappointed expectations. Political fears increased due to Catalonian crises amid Article 155 while Catalonian president Puigdemont called for urgent dialogue instead of respecting the deadline. The pair is currently trading around 1.1758 and the price will eventually test the support at 1.1720.
We expect the price will retest the short term resistance at 1.1785 before the next leg of downtrend. Bearish invalidation happens only if the price closed below 1.1660 on a daily basis.
Support: 1.1750, 1.1720 & 1.1661
Resistance: 1.1785, 1.1820 & 1.1860/80
Trading Recommendation: [Timeframe H1] Sell on rally around 1.1785 with SL above 1.1820 and TP: 1.1755/40/20