© O Financista. EUR/USD retains a profile uptrend
Investing.com – The pair EUR/USD has started a correction yesterday morning after a summit in 1,1570, marking a low of 1,1485 yesterday evening in the context of a fall of nearly 100 pips, but the pair still retains a profile overall uptrend.
On Wednesday, the pair had increased significantly, between a low of 1,1440, and a peak 1,1570, in the face of a sharp drop in the Dollar, linked to the confirmation of a turning dovish tone from the Fed, with the FOMC Minutes in the evening, which highlighted a desire for patience on the part of the members of the Fed regarding future rate increases.
Bullard and Bostic, saying it is open to possible rate cuts, had also weighed on the Dollar and sent the EUR/USD currency pair higher early Wednesday.
The correction of yesterday, seems it not related to a particular news story, and is especially atteribuer to profit-taking, traders are playing it cautious as the end of the week approach.
Yesterday evening, other interventions of members of the Fed confirming the dovish position of the Federal Reserve, but the EUR/USD pair has failed to take advantage of it, and posted a decline in fix up to test the psychological support of 1.15 with a hollow 1,1485.
However, from a graphical point of view, the upward trend in short-term the pair EUR/USD is not in question. The Euro-Dollar remains above the moving average 100 days, to 1,1485, as well as above the upward trend line visible since 3 January, and currently located to 1,15.
Lower down, the moving averages 100 and 200 hours, prespectivement to 1,1480 and 1,1445 will be the next support potential, before the psychological threshold of 1.14.
In case of return of the increase, the top of yesterday to 1,1570 and the psychological threshold of 1.16 will be the first two resistors to monitor.
Finally, it should be noted that the economic calendar of the day will be calm, since only a new estimate of the CPI-US for December will be expected.
Apart from this, it will of course remain also attentive to any new declaration regarding the political impasse of the Shutdown in the United States, the trade war China-USA, or the Brexit.
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