EUR/USD today: the euro is correcting after the decline
After trading on Monday, the EUR/USD pair updated a low at 1.0990. This was caused by increased risks and supported the dollar as a safe haven asset, confirming a rebound from the level of 1.1080-1.1100, the upper boundary of the two-month downward channel.
Events for today:
- 16:15 – the volume of industrial production (y/y) (Aug) in the USA will be released.
- 23:00 – the volume of purchases of long-term securities TIC (July) USA will be announced.
- 23:30 – API weekly crude oil inventories will be released in the United States.
The EUR/USD pair continues to trade near support 1.0990-70, but is limited by oversold and positive data on economic sentiment in the eurozone, which may serve as a driver for correction. It is also worth to note tomorrow’s publication of the US Federal Reserve meeting, from which the rates cut is expected. This can strengthen the correction of positions in the US in front of significant data. Therefore, a moderate correction of this pair to resistance levels is expected: 1.1040-50 and 1.1070. Rising pessimism in the market could slow the weakening of the US dollar.
Read also: “The results of the July Fed meeting for the market”
Hanzenko Anton
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