Israeli Prime Minister Benjamin Netanyahu went live yesterday on Israeli TV to present what he called evidence of a secret Iranian nuclear weapons program. Most of the evidence presented, dated to the period before the 2015 agreement was signed. Iran officials replied by stating Netanyahu’s show was a childish and ridiculous game and was aimed towards imposing more pressure on the United States to pull out of a 2015 nuclear deal with Iran. Further escalations on the matter could strengthen Oil prices as Iran is significantly related with the black gold market and is a major partner in the Organization of the Petroleum Exporting Countries.
EUR/USD dropped yesterday with analysts and traders giving as a reason the German Retail sales for March unexpected decline. On the USD side, data released on Monday showed that U.S. consumer prices accelerated in the year to March. Market focus remains on this week’s FOMC statement for any comments made on a possible June rate hike which could create volatility for USD pairs.
It must be noted that EUR/USD is following up in its downward slide incepted since the 19th of April. Should the bears continue to have the upper hand on the pair, we could see it breaking the 1.2090 support level and aim for the 1.2035 support barrier. If the bulls take the reins we could see the pair breaking the 1.2135 resistance line and aim for the 1.2175 resistance level.