EUR/USD today: the euro is too overbought

The EUR/USD pair is in a significant overbought, limited by the resistance levels: 1.1110 and 1.1130, after growing at the M. Draghi speech and strengthening at the start of the day on the collapse of the US dollar. It is also worth to note the psychological mark of 1.1100, which corresponds to the upper boundary of a three-month downtrend.

Events for today:

• 15:30 – the US retail sales data will be released: core retail sales index (m/m) (Aug), export price index (m/m) (Aug), import price index (m/m) (Aug) and retail sales (m/m) (Aug).
• 17:00 – the US data will be released: inventory (m/m) (July), University of Michigan consumer expectations index (September), University of Michigan consumer sentiment index (September) and retail inventory excluding cars (July).

Today is a day full of the US data. The market also continues to evaluate the results of the ECB meeting.

Despite the fact that the EUR/USDpair  maintains an upward trend in the sale of the US dollar, the upward movement looks very limited. Against this background, a reversal is expected.

Deals for sale should be considered below the level of 1.1080-70, which opens the way to the marks: 1.1020 and 1.1000.

Fxiing this pair above 1.1100-30 will cancel expectations for a decline.

Read also: “Sanctions against Iran
their aggravation and impact on the world market”

Hanzenko Anton

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