EUR/USD today: the euro slowed down on weak eurozone statistics

From the start of the day, the EUR/USD pair has been trading with a strengthening, that has been limited by the preliminary inflation  data in the eurozone. At the same time, an inflation report in the eurozone turned out to be weaker than expected, which had a restrained negative impact on the euro and thus slowed down the upward trend in this pair, which was traced from the start of the day.

Events for today:

• 15:30 – an employment report in the United States: the average hourly earnings (m/m) (December), the average hourly earnings (compared to the same period last year) (y/y) (December), nonfatm payrolls (December), participation rate (December),  private nonfatm payrolls  (December), and unemployment rate (December).
• 17:15 – the speech of Fed Chairman Mr. Powell will take place.
• 18:00 – data on US oil reserves.

This day is full of US data, among which the US employment data and speeches of the US Federal Reserve Chairman deserve special attention. The dynamics of the US currency in the near future will largely depend on it.

The EUR/USD pair maintains a short-term upward trend, limited to resistance levels: 1.1420-50 and weak statistics for the eurozone. At the same time, the main driver of the pair and the market in general remains the US dollar, which has slowed the decline while waiting for the US data. Before the release of the US data, the EUR/USD pair is expected to move in the side channel from 1.1380 to 1.1430-50. Further dynamics of the pair will depend on the American dollar. Thus, the positive employment data in the US and the restrained hawkish Fed comments will cause an increase in the American dollar with an accelerating decline in support levels: 1.1350 and 1.1320-00. Otherwise, a resumption of the uptrend with a resistance test is expected: 1.1450 and 1.1480.

Read also: “Friday trades: features and patterns”

Hanzenko Anton

Earn with the help of the trade service on the news Erste News!

Topical articles of the trader’s blog:

1. Geopolitical risks for the beginning of 2019!
2. Top 5 books on trading. Read and progress!
3. Happy New Year! Summing up the past year.

Current Investment ideas:

1. Intel Microprocessors for Macro Earnings at the Stock Exchange! Connect!
2. Fabulous profit at Walt Disney shares in January!