EUR/USD - EUR/USD Hit a 2-Week High at 1.0800 - 12/06/2016 (GMT)

The world’s most traded currency – the EUR/USD pair – surged almost 2% during yesterday’s session and surpassed the 1.0690 critical level. The pair moved vertical after the Italians voted against the Prime Minister Renzi’s Senate reforms especially after the aggressive sell-off towards the 1.0505 support level. The price challenged the 1.0800 psychological resistance level which overlaps with the 200-SMA on the 4-hour chart, however, the significant obstacle pushed the price lower and currently is developing near the 1.0750 price level. Additionally, looking ahead, we expect the currency to remain below the aforementioned psychological level ahead of the European Central Bank monetary policy meeting on Thursday. The price may retest the 1.0690 handle as the RSI indicator is weakening and is pointing downwards on the short-term timeframe. On the other side, if the price breaks 1.0800 to the upside it will open the door for the 1.0850 resistance level.