EUR/USD today: the euro is rising on the American risks
Tuesday trading is characterized by a significant increase in the EUR/USD pair, which completely crossed out the technical expectations for the pair to decline. The reason for the growth of the euro against the US dollar was the weakness of the latter, which was caused by risks about the US Federal Reserve. The driver for the sale of the dollar were the fundamental factors, or rather the Trump’s criticism of the US Federal Reserve monetary policy. As a result, rumors that the US President D. Trump’s has an intention to dismiss Fed Chairman Powell arose in the market. It is not yet known whether it is possible, but the market’s reaction on this possibility was very keen, which affected the likelihood of rate hikes in December, which in recent days has decreased from 80% to 70%.
Events for today:
- 15:30 – data on real estate in the United States: building permits (November) and housing starts (m/m) (November).
- 23:30 – API weekly crude oil stocks in the United States.
The main driver of the market remains general sentiment, which is very negative before tomorrow’s Fed meeting.
EUR/USD has already updated a week’s high at 1.1400, which meets the upper limit of a three-month downward channel. In the overbought conditions of the pair, its further growth will be limited by the resistance level of 1.1400-20. A moderate correction is also possible, which will be limited to negative sentiments and the expectations of the US Federal Reserve meeting. Support levels: 1.1370 and 1.1350.
Read also: “VSA: bullish and bearish volumes; signs of strength and weakness in the market “
Hanzenko Anton
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