© O Financista. EUR/USD remains unchanged after the ECB and the Fed
Investing.com – The EUR/USD pair posted a strong increase in volatility yesterday in the face of the ECB meeting, which has in the end had no impact on the underlying trend, as the mInutes of the Fed yesterday evening, which have been largely ignored.
The Euro has indeed fallen in a first face of the about as expected, very cautious of Mario Draghi, losing fifty pips. However, after a low day at 1.1230, the pair EUR/USD is to rise, reversing quickly the totality of the losses shown in the face about Draghi.
And if the fall was clearly due to the negative impact of the ECB, the factors that justify the Euro’s rise remain unclear.
The decline in the Dollar is partly due to the fact that the Euro has progressed after an initial response to the downside in the face of the ECB, but technical factors also seem to have played an important role.
In fact, one can notice that the initial fall was stopped by the upward trend line which is supporting the course since 2 April, as well as by the moving average 200 hours. These two technical factors are currently at 1.1240 about and form with the support of 1.1255 the first zone of support which he will need to take into account today.
Below this level, the next support will be at 1.1225, 1.12, 1.1185 and 1.1175, the low annual 2019.
The increase, 1.1285 remains as it has been since the beginning of the week, the first barrier to be monitored, before the psychological level of 1.1300, above which we can estimate that a rebound is more sustainable is possible.
Finally, in regards to the factors that may influence the EUR/USD today, it will be observed entries weekly jobless claims and the consumer price index to the production US, expected at 14: 30, as well as numerous interventions by members of the Fed throughout the afternoon.
The subject of the Brexit will also be to monitor, while a new postponement was decided yesterday, and the theme of the commercial war, which may soon move into Europe, as recalled by Donald Trump last night in another tweet threatening.