Eur/usd Technical

It seems that upcoming hours will be crucial for the EUR/USD as the pair approaches an important short-term resistance.

After unexpected decision of the PBOC to devalue the Chinese currency once again, the pair gained some momentum and rose sharply overnight. For now, markets turn their attention towards Eurozone industrial production data which will be followed by the US data releases due later in the day for further momentum.

The pair faces now an important resistance at 1.1100 levels, above which gains could be extended to 1.1120 levels. However, according to the European traders, there is a huge supply around 1,11-1,1120 and that means that the pair may reverse and go down once again.