© O Financista. EUR/USD reverses the impact of the Fed
Investing.com – The last two days have been particularly hectic for EUR/USD. After having grown strongly in the face of the ads dovish tone from the Fed on Wednesday evening, the pair of currencies most traded in Forex has cancelled all of its gains yesterday.
The pair has indeed suffered as a result of the combination of several factors, with in the first place, a rebound in the Dollar, with the Dollar Index, which exceeded yesterday afternoon its levels prior to the Fed meeting.
Some hopes in regards to the relationship China-USA and the possibility of an agreement, as well as a few statistics US satisfactory could in part explain the Dollar’s rebound yesterday, which is, however, also link to technical factors and positioning, after the unexpected rise on Thursday evening.
The plunge of the pair GBP/USD, which was near the threshold key of 1.30 yesterday with a low at 1,3005 the face of the uncertainty surrounding the Brexit, has also played a role in the decline of the Euro.
The pair EUR/USD has cancelled the impact of the Fed almost as quickly as it had risen in the face of the announcements of the previous day.
However, the arguments of a bull, which were already valid from a technical point of view before the Fed remain, notably with an upward trend line visible in the hourly data from the 13 march, and that stopped the fall of the EUR/USD yesterday.
The pair remain above its moving averages 100 and 200 hours, which retain a positive direction.
In the end, we can consider that as the Euro-Dollar maintains 1,1350, the possibilities of return of the increase will remain open, and in this case, the targets to be monitored will be at 1.14 and 1,1450.
Has the decline, a correction in 1,1350 would weaken the upward bias of the background, but this is only under the 1.13 that we may begin to imagine a bearish reversal sustainable.
Finally, it will be recalled that the economic calendar of this last day of the week will be fairly loaded, with the PMI preliminary european this morning at 9: 30 for Germany and 10 am for the Euro Area. The same economic indicators for the USA will be expected at 14: 45, before the sales of older homes to 15h.
Of course, the Brexit and the trade war China-USA are still subjects in the foreground, and that are likely to influence the exchanges at any time in case of new important statements.