EUR/USD today: the pair is preparing for correction
Trading on Wednesday closed with a significant decline in the euro against the US dollar, which was caused by the resumption of political risks in Italy and the possibility of resumption of trade confrontation in the United States. Thus, the EUR/USD pair has renewed the low of the year at the level of 1.1980, but it could not fix below the psychology 1.1700.
Events for today:
- 11:30 – data on retail sales in the UK.
- 14:30 – the minutes of the ECB meeting on monetary policy.
- 15:30 – the number of initial applications for unemployment benefits in the United States.
- 17:00 – data on real estate in the US.
It is worth highlighting the publication of the ECB protocol.
Against the background of the resumption of the US trade war and the soft FRS protocol, the US currency may fall under a significant correction. In this case, with the fixation above the level of 1.1730-40, one should expect movement against Wednesday, which will be limited by resistance: 1.1770 and 1.1800. Support is located at the levels of 1.1700 and 1.1680, the update of which cancels expectations for correction and will indicate the continued downward dynamics of the pair.
Fig. EUR/USD. Current price – 1.1720
Also, read “US Trade War 2.0. New facts”.
Hanzenko Anton