EUR/USD today: the pair continues to be limited by the side channel

The EUR/USD pair at the opening of a new trading week continues to trade in the side channel, limited to the trading range on Friday, which indicates a slowdown in the upward trend, which was observed last week. And it maintains a downtrend of the last three months.

The economic calendar at the start of the week remains empty. At the end of the day, the US Fed Chairman Powell will make a statement, which may cause an increase in market volatility. The main driver of trading on Monday remains cautious optimism on stock exchanges.

In the conditions of maintaining lateral dynamics by the EUR/USD pair, and rebound from the 1.0990-1.1000 zone, we should expect the formation of a downward reversal, which will confirm keeping the three-month downward trend. The main drivers of trading remain general sentiment, which is directly related to the risks of a trade war. Thus, the growth of optimism in the market will support the American dollar and return this pair to support levels: 1.0930 and 1.0900. With the growth of pessimism, the American dollar is expected to weaken further to resistance levels: 1.1000 and 1.1030.

Read also: “Gold forms a reversal.
Correction before the resumption of growth“

Hanzenko Anton

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