EUR/USD today: the pair is waiting for correction

With the opening of trading on Thursday, the US dollar remains under pressure against most major competitors. The exception was some commodity currencies, which also decreased due to the growth of risks, but after that they lost losses against the American dollar. The main driver for the sale of the US dollar continues to be the Fed’s soft policy and general risks, which intensified after the Fed meeting.

Events for today:

• 14:00 – meeting results of the Bank of England will be published.
• 15:30 – US data are coming out: initial jobless claims, Philadelphia Fed manufacturing index  (December) and Philadelphia Fed employment index (December)

The market continues to play the results of the US Federal Reserve meeting and the rates hike. Also it is worth noting a significant oversold of the US currency, which limits the further dollar decline.

The EUR/USD pair remains significantly overbought, limited to the 1.1480-1.1500 zone, from which we can expect a correction. In this case, the publication of the meeting results of the Bank of England can have a significant impact on the euro through the cross EUR/GBP. In this situation, a moderate correction to support levels is expected: 1.1450 and 1.1430, which will be limited to negative market sentiment.

Read also: “Complex Rollback – one more secret of technical analysis.”

Hanzenko Anton

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