EUR/USD extends reversal from Thursday’s spike

EUR/USD is about to post the second daily decline in a row. The pair continues to decline after making on Thursday a spike to 1.0650 and it was about to end the first trading day of 2017 below 1.0500. 

Currently, it stands at the lows, hovering around 1.0460. Today price dropped back below the 20-day moving average and is now approaching the previous trading range that prevailed before the spike, when the pair moved between 1.0500 and 1.0350. 

It would be interesting for trades to see, if tomorrow current price levels are confirmed, with volume likely to rise significantly, as markets return to normal trading. Economic data on Tuesday in the Eurozone, includes inflation data from Germany and in the US, the ISM index will be released. 

EUR/USD technical levels 

To the upside, resistance levels might now be seen at 1.0505 (Dec 30 low), 1.0580 and 1.0650 (Dec 29 high). On the downside, support could be located at 1.0425 (Dec 23 low) and 1.0400 (psychological) and 1.0380 (Dec 21 low).