EURO BEARISH BELOW THE 1.1770 LEVEL

The euro continues to soften against the U.S dollar, hitting 1.1750 during the Asian trading session, as political in-fighting escalates between Catalonia and Madrid. The EURUSD currently trades on the back-foot, around the 1.1768 level, as Catalonian's President PuigDemont refuses to accept direct rule from Madrid after Spain's Prime Minister Mariano Rajoy declared the referendum vote illegal.

• The EURUSD pair is increasingly bearish while trading below the key 1.1770 level. Further intraday declines remain likely towards the 1.1750 and 1.1729 technical support levels.

• Should the EURUSD pair regain price-action above the 1.1770 level, a recovery towards the 1.1800, 1.1815 and 1.1833 levels should be expected.