EUR/USD today: a pair is under pressure of correction

Trades on Wednesday were closed by a collapse of the US dollar on the results of the meeting of the US Federal Reserve. As a result, this pair managed to update the maximum of the current week 1.2390, but it was not possible to gain a foothold above the resistance of 1.2350, due to weak data on the eurozone.

Events for today:

• 14:00 – the results of the meeting of the Bank of England: the total volume of the Bank of England’s QE program and the decision on the interest rate of the Bank of England.
• 14:30 – the number of initial applications for unemployment benefits in the United States.
• 15:45 – data on business activity in the manufacturing sector (PMI) of the United States.
• 19:00 – a speech by a member of the Monetary Policy Committee (MPC) of the Bank of England Ramsden.

The market continues to analyze the report of the Fed, as a result of which a restrained recovery of the American is traced. Also today, the market expects a report from the Bank of England, which may have an impact on this pair through the cross EUR/GBP.

The inability of the EUR/USD to gain a foothold above 1.2350 points to the safety of the downtrend, which may strengthen the correction and resume the decline. A significant area, from which it is possible to repel, is located at the levels from 1.2330-20 to 1.2370-80. In this case, the main support is located at the levels: 1.2300, 1.2280-70 and 1.2260-50.

Fig. EUR/USD. Current price – 1.2320

Hanzenko Anton