EUR/USD today: the pair is limited by significant resistance

After yesterday’s EUR/USD pair growth and today’s maximum update at 1.1720, buyers were clearly out of steam, and this pair formed a significant resistance at the level of 1.1700-20. Positive trading on the European stock indices puts pressure on the dollar, but a new round of trade confrontation between the US and China also raises concerns.

Events for today:

• 11:15 –  speech of the head of the ECB Draghi will be held.
• 23:00 –  TIC Net  long-term purchases (July) in the US.

The picture for the EUR/USD pair and on the market in general is very ambiguous. The resumption of the risks of trade confrontation with the new US duties will put pressure on the market, but the safe assets on the contrary become cheaper on the growth of optimism, indicating complete disregard for the commodity relations between the US and China. This is probably a temporary phenomenon.

Against the background of the overbought pair EUR/USD we should expect a correction at a decline below 1.1670-60, which, in turn, will be limited to the uncertainty of the market. Updating the highs at 1.1700-20 will cancel the possibility of correction. In case of development of correction it is necessary to expect tests of support levels: 1.1630 and 1.1600.

Read also: ” Collapse of the Turkish lira. A threat to the market “

Hanzenko Anton

 

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