EUR/USD: Corrective advance to face stubborn resistance at 1.1710

EUR/USD is up this Monday, as market players kick-started the week with an optimistic stance. The pair is poised to extend its advance but gains are likely to be limited as it faces critical resistance at 1.1710, FXStreet’s Chief Analyst Valeria Bednarik reports.

Key quotes

“Upbeat Chinese data and hopes for an EU-UK post-Brexit trade deal keep equities well into the green, which in turn, weigh on the greenback. A scarce macroeconomic calendar exacerbates sentiment-related trading, as the EU didn’t publish relevant data, while the US will only offer the Dallas Fed Manufacturing Business Index for September, previously at 8.”

“The short-term picture suggests that the current corrective advance may continue, as, in the 4-hour chart, the pair is firing up above its 20 SMA. Technical indicators, in the meantime, head firmly higher, entering positive territory. The next Fibonacci resistance level is 1.1710, and the pair would need to clear it to shrug off the negative stance.”