© O Financista. EUR/USD, Euro-Dollar
The EUR/USD pair still shows a graphical trend downward as we approach the mid-session in Europe, despite the attempt of yesterday’s rally.
It should be remembered that after new lows on 1.2182 in the morning, EUR/USD had risen up to the top of a 1.2244 yesterday evening, to then resume its decline.
This morning, the EUR/USD has once again tried to break below the psychological level of 1.22, with a low daily at 1.2186. Support is emerging in this area, with a low of 1.2186 today, 1.2182 yesterday and 1.2184 the day before.
The dominant theme of a fundamental point of view remains the rate increase in the USA, with new heights to 3.032%, the rate to be 10 years ago this morning, a threshold that had not been visited since July 2011, it has been almost 7 years…
The short rates follow, with a rate at 6 months which currently points to 2.049, the highest since June 2008. The rate at 5 years also marked new heights today, 2.854%, the highest since September 2008.
All this thus supports significantly the Dollar, as we can see on USD/JPY which mark new highs, but EUR/USD resists to accentuate its decline, and the support around 1.2180 is good for the moment.
This is without doubt due to the prospect of the ECB meeting tomorrow, which urged traders to be cautious until we know more about which Mario Draghi will hold, because it is still possible that it promotes the rise of the Euro, after the expectations in terms of the announcement of the end of QE have receded in recent weeks.
Finally, it should be noted that in case of termination under the support of 1.2180, the next threshold to watch for on the Euro Dollar will be around 1.2155, the low of march 1, 2018.