EUR/USD today: the American resumed the onslaught
On Wednesday, the pair EUR/USD sharply strengthened, placing doubts on the safety of the downtrend, which was caused by fundamental factors. The decline of the American was caused by the China’s announcement of intentions to reduce the purchase volume of the US bonds. As a result, the dollar was under pressure across the entire spectrum of the market, but there was no further confirmation of China’s intentions, which caused the correction of the American.
Events for today:
- 12:00 – publication of the volume of industrial production of the euro area (m/m).
- 14:30 – publication of the minutes of the ECB meeting on monetary policy.
- 15:30 – the US news block: the basic producer price index (PPI) in the USA (m/m), the number of initial applications for unemployment benefits in the US, and the producer price index (PPI) in the USA (m/m) .
- 21:00 – announcement of the report on the implementation of the US federal budget.
The day is very full with the expected news, but the market also monitors the fundamental factors that influenced the trades at the beginning of the week.
Given the safety of the downward trend of the EUR/USD pair and the end of the psychology of 1.2000, one should expect further decline of this pair. The main support zone is: 1.1920-10. The breakthrough of this zone will open the way for sellers to support levels 1.1880 and 1.1860, near which there is a lower limit of the rising channel. Resistance is located at the levels: 1.1970 and 1.2000.
Fig. EUR/USD. The current price is 1.1940.
Hanzenko Anton