EUR/USD today: retains the potential to strengthen, but is limited to overbought
Against the backdrop of worsening protectionism in the US and the subsequent sale off of the American currency, the pair EUR/USD managed to gain a foothold above the psychological mark of 1.2400. As a result, a restrainedly negative attitude towards the US dollar remains in the market, but also considerable oversold over the EUR/USD pair.
Events for today:
- 14:30 – the annual budget of Great Britain.
- 15:15 – the change in the number of employed in the non-agricultural sector of the US from ADP.
- 15:30 – a news block on the US: the level of productivity in the non-agricultural sector of the US (q/q), the trade balance of the United States and labor costs in the US (q/q).
- 17:30 – data on oil reserves in the United States.
- 21:00 – punblication of the “Beige Book” of the US Federal Reserve.
The day is full of statistics on the US, but the market is focused on the possibility of unfolding the US trade war, which puts pressure on the American currency. In turn, the growth of this pair is limited by overbought and waiting for tomorrow’s meeting of the ECB.
The preservation of the upward trend in the euro indicates further strengthening of the EUR/USD pair to the resistance levels: 1.2450-60 and 1.2500. Also do not forget about the overbought of the pair, which can cause correction with the update of support levels: 1.2380-50 and 1.2330. At the same time, the dynamics of this pair and the US dollar as a whole largely depends on the fundamental factors.
Fig. EUR/USD. The current price is 1.2430.
Hanzenko Anton