EUR/USD today: the pair keeps a downtrend
On Wednesday, the pair EUR/USD showed mixed volatility and closed the day with a slight increase, which was mainly caused by new data on the trade confrontation between the US and China, namely, new import taxes. On Thursday, the American accelerated growth on the rumors that the US and China can sit down at the negotiating table.
Events for today:
- 15:30 – data on the US: the number of initial applications for unemployment benefits in the US and the US trade balance.
The market is focused on data on trade relations between the US and China. Also, the market begins to prepare for Friday’s report on employment in the US.
In the conditions of reduction of fears of a trade war and a downward trend, the pair EUR/USD retains the potential to decline, but is limited by the oversold and uncertainty caused by the trade confrontation. With the continuation and growth of optimism in the market, one should expect further strengthening of the American and a decline in the pair EUR/USD to the support levels: 1.2240 and 1.2200. But, because of the uncertainty and expectations of the Friday news, the formation of a flat in the range from 1.2260-50 to 1.2280-90 is possible.
Fig. EUR/USD. The current price is 1.2270.
Hanzenko Anton