EUR/USD: The Dollar continues to rise, the pair is approaching its hollow annual

© O Financista. EUR/USD, Euro-Dollar

The rise of the Dollar continues to fuel the decline of the EUR/USD pair this morning (Thursday).

The Euro Dollar has in fact marked a low 1.1527 towards the opening of the european session, posting a decline of almost 150 pips from the top to 1.1672 yesterday morning.

Recall that the downward phase of which is currently the EUR/USD pair has started as early as Monday after a summit at 1.1720.

This movement is essentially linked to a comprehensive strengthening of the greenback that we can confirm with the US Dollar Index, which presents an inverse correlation striking with the EUR/USD this week.

The low of Monday at 94.18 in the Dollar Index is, in fact, precisely at the peak, a weekly EUR/USD. This is also the case for the low daily EUR/USD yesterday evening, which was also precisely at the peak daily Dollar Index.

The scenario is the same this morning, with an acceleration upward, and a new peak at 95.52 to the Dollar Index, while EUR/USD accelerated to the downside and marked new lows.

Yesterday, the statistics to US better-than-expected (durable goods orders and trade balance) had participated in the strengthening of the us Dollar. The bank Barclays (LON:BARC) had especially relied on these statistics to decide whether to raise its growth forecast for Q2 at 4.7% vs. 3.5% previously.

We will monitor closely with the third GDP estimate of US first quarter expected at 14: 30 on Thursday. The consensus does not foresee any revision, with a quarterly growth still expected to be 2.2%.

A revision upward surprise would feed still further the expectations positive, and could strengthen the Dollar. Conversely, a downward revision would be the effect of a cold shower, when the market displays a certain optimism about the United States.

From a graphical point of view, in the short term, it may be noted that the Euro Dollar is currently testing the support of 1.1530-35. Below this threshold, the next threshold will be hollow annual 2018 marked 1.1507 last week, with the psychological threshold of 1.15.

The increase, 1.1550, 1.1570 and 1.16 are the first resistors that will need to be monitored in the event of a rebound.

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