EUR/USD today: is in the sideways trend
After the multidirectional trading on Wednesday, the pair EUR/USD closed the day at the opening level. The restrained strengthening of the US dollar was caused by the expectation of an early rate hike in the US in March. At the same time, the market is still cautiously looking at the US currency, waiting for data on employment in the US, which will be released tomorrow.
Events for today:
- At 15:30 – a news block on the US: the number of initial applications for unemployment benefits in the US, the level of productivity in the non-agricultural sector of the United States (q/q) and labor costs in the US (q/q).
- 16:45 – the index of business activity in the manufacturing sector (PMI) of the United States.
- At 17:00 – data on activity in the manufacturing sector of the United States.
Today, the market will be focused on data on activity in the manufacturing sector. At the same time, the market is gradually shifting attention to tomorrow’s employment data in the US, which may cause a correction of positions by the end of the day.
Despite the significant news, the pair EUR/USD is traded in the side triangle, thus indicating the possibility of further growth. It is also worth noting that the overall upward trend that has been traced since November last year remains in a significant overbought. Under conditions of some uncertainty and the formation of a lateral triangle, this can cause a full-scale correction.
The upcoming news may cause volatility, but the pair will be limited to upcoming US employment data. Therefore, trades are expected in the range: from 1.2390-80 to 1.2480. Significant support levels: 1.2380 and 1.2350, resistance: 1.2480 and 1.2500.
Fig. EUR/USD. The current price is 1.2440.
Hanzenko Anton