EUR/USD today: the euro is in the oversold zone
Trading on Wednesday opened with a small decline in the EUR/USD pair, which was caused by the continued risks on the market and the worsening of relations between the US and Turkey on a statement by representatives of the Turkish government that they would resort to tightening trade relations with the US. As a result, negative moods remained in the market despite the correction of the Turkish lira. And the euro continued to weaken against the US dollar.
Events for today:
- 15:30 – the US news block will be released: core retail sales index (m / m) (July), nonfarm productivity (Q2), the NY Empire State Manufacturing Index (Aug), retail sales (m / m) (July) and labor costs (q / q) (Q2).
- 16:15 – data on industrial production in the US.
- 17:00 – business inventories (m / m) (June) in the US.
- 17:30 – data on oil inventories in the United States.
- 19:00 – the speech of the President of the Bundesbank Weidmann will take place.
- 23:00 – TIC Net long-term transactions (June) USA.
With the return of European stock exchanges to the red zone, pessimistic sentiment on the market has increased. At the same time, the euro remains in considerable oversold against the US dollar, which may serve as an excuse for correction and will limit further decline of the pair. Also on the timeframe H4, the formation of bullish divergence is traced, which also serves as an excuse for correction.
Significant support for the EUR/USD pair is 1.1320-00, from which correction is possible. Levels of resistance are located at the levels: 1.1360-50 and 1.1380.
Read also: “Trading Against the Trend Using Examples”
Hanzenko Anton
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