EUR/USD today: the pair is testing a significant support

The EUR/USD pair demonstrates a restrained correction on Tuesday after updating its two-year low on Monday, breaking off from the level of 1.0880. By this, the pair indicated attempts of correction within the two-week downtrend.

Events for today:

• 16:45 – the index of business activity in the manufacturing sector (PMI) (September) USA will be announced.
• 17:00 – the US data will be released: the ISM manufacturing index (Sep) and ISM  manufacturing business activity index (PMI)  (September).

A restrained correction is traced for the dollar after the rapid growth of the American dollar across the market. The EUR/USD pair was no exception and demonstrates attempts to grow on the correction, limiting itself to a downtrend. The growth of the euro against the dollar should be limited by a downtrend and levels: 1.0930 and 1.0950, from which we can expect a rebound. The resumption of decline will open the way to support levels: 1.0880 and 1.0860. Zone 1.0860-50 acts as significant support.

Read also: “A new front opens in the trade war”

Anton Hanzenko

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