EUR/USD: bears back in control, heavy in 1.18 territory

EUR/USD has been rejected by the 200 sma on the hourly sticks.

This level is now located at 1.1814. EUR/USD bears are seeking a break below the 1.18 handle as the US session progresses, but there is very little out there as a catalyst for any moves to be sustained currently. 

US & N.Korean diplomats could meet in Moscow this week - Interfax

The dollar, however, is a little firmer on recent reports that diplomats from the US and N.Korea are meeting, which will hopefully reduce the risks of an outright war from escalating in the near-term. Elsewhere, eyes will be on the Spanish/Catalonia stand-off whereby the Spanish have given Catalonia until Thursday to drop their independence campaign. 

EUR/USD levels

Technically, the pair is between key break out points. "We would treat a break below 1.1660 as the completion of a top formation for the market and a trigger for a sell-off to the mid-June high at 1.1296 and the more important 1.1110 end of May low," explained analysts at Commerzbank. 

Valeria Bednarik, chief analyst at FXStreet argues that  the upward scope seems limited by selling interest on approaches to 1.1820, and seems there won't be today a trigger that can push the level beyond it. "If it happens, however, the pair has scope to extend its gains up to the 1.1850 region. To the downside, the 50% retracement of the latest bullish run stands at 1.1775,  while the pair has a static support a few pips below the level, in the 1.1760 region. Below this last, the 1.1720 comes next ahead of the critical 1.1660 region," Valeria added