EUR/USD could face resistance at 1.1562

Daily chart – Plot fib extensions on the rally from June 20 low. We get 76.4% extension at 1.1562. The RSI is almost overbought, but that isn’t a holy grail of sorts. Expect another wave of USD selling in NY open. 1.1616 looks scalable this week.

EURUSD D1 (07-18-2017 1632).png

But what does it mean for Draghi & Co. Fed tightening was boon of sorts for other central banks like the ECB. Now with the declining odds of Fed tightening, the EUR is on the rise. ECB is facing its own technical issues with respect to QE, its a done deal that the central will have to announce  taper this year due to technical factors.

If the EUR/USD would not have rallied so much, Draghi may have announced  taper this week. But EUR rally may force Draghi to remain non-committal this week…

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