EUR / USD today: the pair is waiting for correction

Trades on Wednesday were closed by the general strengthening of the American dollar on  the market, which was caused by the statement of the Trump administration about the reduction of restrictions on Chinese investments in the US, which was eventually regarded by the market as an easing of tension in the trade confrontation between the US and China.

Events for today:

• 15:00 – the consumer price index (CPI) in Germany (m / m).
• 15:30 – data on US GDP: US GDP (QoQ), US GDP deflator (QoQ) and the number of initial applications for unemployment benefits in the US.

Despite the reduction in risks associated with the trade confrontation of the States, the market will continue to monitor this situation. Also, investors’ attention today will be focused on inflation in the eurozone and US GDP, which will affect the dynamics of this pair.

In conditions of oversold EUR / USD, one should expect a low-key correction, which will allow the pair to return to a downward trend. At the same time,  volatility may increase due to upcoming news.

So, the main support for the EUR / USD pair is the level of 1.1550, the breakthrough of which is possible on the growth of optimism for the American dollar. This will open the way to 1520-00. Levels of resistance are located at the levels: 1.1580 and 1.1620, which correspond to the upper boundary of the downward channel.

 

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Hanzenko Anton