EUR/USD today
Yesterday, the pair EUR/USD finished trading with growing trend, which was based on rumors about a reduction in the program of asset repurchase in the euro area. As a result, yesterday’s forecast for this pair was partially justified. Today, trading in Asia picked up yesterday’s dynamics of the euro, which intensified by the negative opening of European stock indexes.
Events for today:
- 11:30 – Publication of data on sales in the UK: the base retail sales index in the UK (y/y), the base retail sales index in the UK (m/m), retail sales in the UK (y/y) and retail sales in the UK(m/m).
- 15:30 – Release of a news block in the US: the number of initial applications for unemployment benefits in the US, the index of production activity of the Federal Reserve Bank of Philadelphia (USA) and the employment index of the Federal Reserve Bank of Philadelphia (USA).
The day is full of data, and the dynamics of the cross EUR/GBP may affect the pair EUR/USD. Optimism regarding the curtailment of the incentive program in the euro area has significantly decreased on the comments of ECB representative Novotny. As a result, a correction is observed for the pair against yesterday’s movement.
The EUR/USD remains largely dependent on fundamental data and rumors. But, given the existing downward trend and the formation of the figure of head and shoulders on D1, this pair remains overbought. Therefore, after a decline to the level of 1.1770 (Fibo. 23.6 from the September’s high), one should expect a slight correction and the decline. Support levels continue to be: 1.1740 and 1.1710-00, resistance: 1.1800 and 1.1830 (Fibo, 38.2 from the September’s high).
Hanzenko Anton