EUR/USD today: the pair is on the cusp of decline
Tradings on Wednesday ended with the renewal of November highs at 1.1860, followed by a correction, which can be traced today. Before the opening of the European session, the pair EUR/USD managed to update the maximum of the day, thus forming the second shoulder of the figure “head and shoulders”.
Events for today:
- 15:30 – news block on the US: the US export price index (m/m), the US import price index (m/m), the number of initial applications for unemployment benefits in the US, the manufacturing activity index by the Federal Reserve Bank of Philadelphia (USA) and the employment index of the Federal Reserve Bank of Philadelphia (USA).
- 16:00 – the speech of the head of the Bank of England, Carney.
- 16:15 – publication of the volume of industrial production in the US (m/m).
The day is full of news, which can cause the growth of volatility in the American session. The pressure on the euro and the dollar is provided by the British pound after the publication of data on retail sales in the UK. This limits the dynamics of this instrument.
Currency pair EUR/USD: on H1 formed the figure of “head and shoulders”, which indicates a reversal of the trend and strengthening of the American. The signal for testing this figure will be the breakthrough of support 1.1870-50, which will strengthen the correction to the support levels: 1.1720-00. But, given the restraint of trading and the reluctance of the market to close long positions in a pair, EUR/USD can spend a day in flat, waiting for data on the US. The resistance is located at the levels: 1.1800-20 and 1.1850-60.
Hanzenko Anton