EUR/USD today: the euro has slowed the growth, but risks remain

After the rapid growth on the risks of a slowdown in the global economy and expectations of lowering rates in the US, the EUR/USD pair is very close to the significant resistance 1.1260-80, which meets the upper upper limit of the annual downtrend. But weak inflation data in the eurozone caused a correction and attempts to form a correction.

Events for today:

• 16:45 – Fed Chairman Powell will speak.
• At 17:00 – the volume of deliveries of civilian means of production (excluding aircraft) (m/m) and the volume of industrial orders (m/m) (Apr) in the USA will be published.

The main driver of the market remains trading risks and the growing likelihood of lower rates in the United States, which are the main driver for selling the American dollar.

The rebound of the EUR/USD pair from the level of 1.1280 indicates attempts at correction after a rapid growth. Fundamental risks will limit the possibility of a deeper correction. A deeper decline in the pair can be expected after penetration of support 1.1200-10. Until this time, the pair is expected to move in the side channel from 1.1280-90 to 1.1200-20. In conditions of exacerbation of risks, updating of the maxima is not excluded

Read also: “Features of trading within a week”

Hanzenko Anton

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