© O Financista. The dollar is declining, pushing EUR/USD up
Investing.com – The EUR/USD pair has some negative information for the Dollar on Wednesday, managing to score a top day at 1.1180 for the moment, after a low of 1.1148 this morning.
Bullard, the president of the St. Louis Fed, said he did not exclude a rate cut later this year. And even if Bullard is known as one of the most dovish of the Fed, the fact that a rate cut is openly discussed to weigh on the Dollar.
The secretary of the US Treasury has also confirmed that there is currently no project to send an american delegation in China to continue the trade negotiations, also weighs on the greenback.
From a technical point of view, the rise of the day has given place to a test above the moving average 100 hours, over which EUR/USD had already tried to go yesterday, without success.
More important, the rebound of this Wednesday allows us to test the trend line is downward visible from the summit on 13 May.
But in the end, the rebound of the day remains for the moment within the limits of the one yesterday, that had quickly been cancelled, and there is no evidence at this stage that it is a beginning of bullish reversal, especially that major events are expected tomorrow, with the PMI preliminary for the month of May of the euro area.
In relation to important thresholds, it should be noted that if the rise continues, the next resistance potential are 1.1193-1.12 (MM200h and psychological level), before 1.1225, 1.1265 and 1.13.
Has the decline, 1.1150, 1.1140, 1.1135 and 1.1110 (hollow annual) are the first carriers to take into account.