EUR/USD today: the euro has received a support on exacerbation of trade tension
At the trades on Wednesday before the opening of trading in Europe, the EUR/USD pair received a significant support. The reason for this was the evidence that China restrict visas for the US visitors. This was regarded by the market as an aggravation of relations between these countries. Due to this, pessimistic moods preceded the US – China trade talks.
Events for today:
- 17:00 – JOLTS jobs opening (Aug) in the USA will be released
- 17:30 – crude oil inventories in the United States will be published.
- 18:00 – the speech of the Fed Chairman Mr. Powell will take place.
- 21:00 – FOMC protocols will be published.
The day today is full of data on the US, which will set the tone for trading in the afternoon. The US – China trade relations continue to be the main fundamental driver of the market.
The EUR/USD pair is trading with strengthening since the beginning of the day, testing the level of 1.0990-1.1000. This level acts as a significant resistance, limiting the further growth of the euro. Due to the exacerbation of tension in the US-China trade negotiations, the possibility of a downward reversal has decreased, but the formation of a low at 1.0950 saves this possibility. The zone from 1.1000-10 to 1.070-60 acts as a zone of uncertainty, the way out of which will be more associated with the results of trade negotiations.
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Hanzenko Anton
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