Last week was a tale of two halves for EURUSD: Trump took verbal shots at the USD, while later in the week there was the ECB & Draghi who knocked the single currency. After all the verbal interventions and turbulence, EURUSD finished the week on a strong note.
Even over the weekend, we have had Draghi say “If a country were to leave the Eurosystem, its national central bank’s claims on or liabilities to the ECB would need to be settled in full”, suggesting that if a periphery country were to leave they would basically be bankrupting themselves.
Currently, EURUSD is chewing into an area of resistance.
Just below the median of the recent uptrend, a 61% fib of the Sep-15 to Jan 17 move and a former support zone. But on the other hand, there is an inverse head and shoulders on the hourly chart. Could go either way, but this is an area of interest.
Take your bets! Will this neckline pop or drop?
Interestingly at the same time USDCHF also looks to be at a support zone:
EURCHF is doing its usual thing, looks like there is a floor between 1.0700-1.0680 *wink wink*
There should be some interesting intermarket play, especially given the potential for the SNB to intervene or Draghi and Trump to come along and knock their respective currencies.