The risk of a correction seems to be high on EUR/USD
Investing.com – The EUR/USD pair increases again for higher this Tuesday, posting a third consecutive day of rebound after the plunge in the face of the ECB meeting last Thursday.
The Euro-Dollar comes in effect to mark a summit at 1.1283, reversing approximately two-thirds of the fall post-ECB.
The very strong rise in GBP/USD since yesterday noon, with a gain of over 300 pips, is not foreign to the good performance of the single currency, even as the slight weakness that can be seen on the greenback by observing the recent evolution of the Dollar Index.
From a graphical point of view, the new acceleration upward trend visible since yesterday evening, has given rise to several technical signals are positive, the EUR/USD pair has broken above its moving average 100 hours, and above a line of downward trend that is visible from the top of the 1st march.
Caution is nevertheless called for, with important resistances near current price : 1.1285 and the only psychological of 1.13, which is also moving average 200 hours.
As long as the pair EUR/USD is not a deal-breaker not above this threshold, the current rebound will look like, for the moment, especially to a sales opportunity for a resumption of the decline in short-term.
Today, the economic calendar will be fairly light, with only a new CPI estimate US, and it is especially on the Brexit and the impact that the GBP/USD that it will take focus to tackle the trading on the pair EUR/USD.
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