EUR / USD today: the pair forms the downward channel
After the multidirectional trading on Wednesday, the pair EUR / USD closed the day near the lows of the month, thereby consolidating below the key support 1.1700 and indicating the refraction of the uptrend and the formation of a downward trend.
Events for today:
- 14:00 – the publication of the minutes of the ECB monetary policy meeting.
- At 15:30 – data on inflation in the US: core consumer price index (CPI) in the US (y / y), core consumer price index (CPI) in the US (m / m), the consumer price index (CPI) in the US (m / m) and the number of initial jobless claims in the US.
- 21:00 – a report on the US federal budget balance.
After yesterday’s changing mood, a certain quiet remains on the market, which is caused by the waiting for publication of the ECB protocol and inflation data in the US. For example, the market expects more data for the US, since the growth of consumer prices with a high probability will confirm two more rate increases in the US this year. The ECB protocol may also have an influence on the euro, especially after the ECB representatives began hinting at the possibility of an earlier rate rise.
Technically, the pair EUR / USD is limited by oversold, despite the formation of a downtrend. In the technical analysis, one should expect a restrained correction, but the upcoming news is likely to make its own corrections. Therefore, during the day, we expect growth in volatility. Support levels: 1.1640 and 1.1590, resistance: 1.1700-20, 1.1750 and 1.1780.
Read also: “Bill Williams’ Fractals and Trade on them.”
Hanzenko Anton
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