© O Financista. EUR/USD weakens sharply on the Forex
After having increased its rise by progressing to a peak at 1.1420 yesterday in the early afternoon, the highest since 5 February, the pair EUR/USD has started a correction that begins to extend enough to call into question the upward bias of the background that drives the exchanges since the middle of the month of February.
The pair has marked lows in the area of 1.1360 yesterday afternoon and this morning, penalized by the rise in the Dollar in the face of statistics in the US were positively surprised.
Indeed, GDP US preliminary Q4 2018 was found to be superior to the consensus, quelling fears of impending recession in the USA, while the index Chicago PMI, rising very sharply and is at its highest in more than a year, confirmed that the US economy still has the resource in spite of the concerns.
An economic calendar is exceptionally dense on this Friday
Today, the evolution of the pair EUR/USD could once again depend on the economic calendar, with numerous statistics to monitor in Europe as in the United States:
- 09h55 : PMI manufacturing of Germany (February, final figures)
- 09h55 : Evolution of the German unemployment (January)
- 10 am : manufacturing PMI of the Euro Area (February, final figures)
- 11am : IPC preliminary of the Euro Area (February, preliminary data)
- 11am :the unemployment Rate in the Euro Area (January)
- 14: 30 : household Spending and consumer price index PCE related to household spending (December)
- 15: 45 it : PMI manufacturing US (February, final figures)
- 16h : ISM manufacturing US (February)
- 16 : consumer confidence Index US, according to the University of Michigan (February, final figures)
With such a program, the volatility could increase this Friday, which should lead to caution. It should be noted, however, that it will be necessary to more specifically monitor the CPI of the Euro Area at 11 a.m. and the ISM manufacturing index US, at 16h, the 2 most important events in the economic calendar of the day.
Technical analysis EUR/USD
From a graphical point of view, several signals are also an incentive to be cautious in relation to buying positions on EUR/USD.
The Euro-Dollar has broken below the lower bound of the uptrend channel visible since mid-February, as well as the moving average 100 hours.
In the case of a continuation of the correction, the moving average 200 hours at 1.1353, and the support of 1.1350 will be the first support to monitor.
Lower, the next support potential monitor will be located at 1.1320-25, 1.13, 1.1275, 1.1250 and 1.1233, hollow annual 2019.
In the case of a return in strength of the buyers, the psychological threshold of 1.14, as well as the vertices of yesterday in the zone of 1.1420 will be the first two resistors to take into account on the EUR/USD.
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