EUR/USD today: pair is in overbought zone
After yesterday’s sell-off of the US currency, which more than justified expectations for EUR/USD, the pair remains in the overbought zone, which is limited to the level of highs in January this year. Also, do not forget about the oversold of the American, which limits the further growth of this pair.
Events for today:
- 15:30 – a news block on the US: the basic producer price index (PPI) in the US (m/m), the number of initial applications for unemployment benefits in the US, the index of manufacturing activity NY Empire State (USA), the production activity index from FRB Philadelphia (USA), the employment index of the Federal Reserve Bank of Philadelphia (USA), the producer price index (PPI) in the USA (m/m).
- 16:15 – the volume of industrial production in the US (m/m).
The day is full of statistics on the US, which can affect the correction of the American after the decline. Also, the market continues to monitor the dynamics of stock indices, which have recently shown recovery, but are limited to possible risks.
After accelerating the growth, the pair EUR/USD is in a significant overbought. And zone 1.2480-1.2510, in the conditions of correction, can make a reversal, from which one should expect the formation of correction. In this case, the recovery of the American will largely depend on the US data and the dynamics of the stock indices. Support levels are located at the levels: 1.2440-00 and 1.2370-50.
Fig. EUR/USD. The current price is 1.2480.
Hanzenko Anton