EUR/USD today: the American has a black bar

After the publication of China’s announcement about the intention to reduce or stop the purchase of the US state bonds, which was more like aт information injection, a report of the ECB meeting appeared, in which there seemed to be some hints of a curtailment of the incentive program. The report resumed the negative sentiment on the dollar. After, the statistics on production in the US finished off optimism about the American. As a result, the market remains negative attitude towards the American, which can be traced with the opening of the European session.

Events for today:

• 15:30 – publication of an inflation report and the US: the basic consumer price index (CPI) in the US (y/y), the base consumer price index (CPI) in the US (m/m), the base retail sales index in the US (m/m), the consumer price index (CPI) in the US (m/m), and the volume of retail sales in the US (m/m).
• 17:00 – release of the volume of inventories in the US (m/m).
• 18:30 – the speech of the President of the Bundesbank Weidmann.

Based on the general sale of the American, inflation data in the United States can be regarded very sharply. Especially on the background that the US dollar index accelerated the decline.

Thus, the pair EUR/USD remains in an upward trend, which is seen from the beginning of October last year. Considering technical factors, the significant resistance for this pair is the level of 1.2130-50, the upper limit of the rising channel. Given the nervousness of the market and the upcoming news on the US, one should expect very volatile trades, which are also complicated because of the end of the week. Levels of support are located at: 1.2050-60, 1.2020-00 and 1.1970-50. Resistance: 1.2130-50 and 1.2180.

Fig. EUR/USD. The current price is 1.2100.

Hanzenko Anton