EUR/USD today: the euro is recovering on the aggravation of the US trade relations

On Thursday, the pair EUR/USD significantly strengthened on the weakness of the dollar due to data on the introduction of duties on imports of steel and aluminum in the US. As a result, the pair EUR/USD retreated from the three-month lows and returned above the psychology of 1.2200.

Events for today:

• 20:00 – the number of drilling rigs in the US from Baker Hughes.

The day is not full of siginifcant news. But the formation of a coalition in Germany and the parliamentary elections in Italy will have an impact on the dynamics of the euro. Also, do not forget about the US trade wars, which put pressure on the American currency.

Due to the general weakness of the US dollar, the pair managed to return above the level of 1.2200, which indicates the possibility of refraction of the downtrend. But, in the context of the forthcoming risks in the euro area and the absence of a clear reaction to US trade reforms, the upward movement of the pair is unlikely and will be limited to resistance levels: 1.2300 and 1.2340.

In turn, the pair’s return to the downstream channel (1.2250) will indicate the possibility of further downgrade of the pair and the resumption of the downward channel to the support levels: 1.2200 and 1.2170-60.

Fig. EUR/USD. The current price is 1.2280.

Hanzenko Anton