EUR/USD continued to decline
By David Wagner
Investing.com – After gains on Thursday and Friday last, and marked a new high 1,1215 Monday morning, the pair EUR/USD has started a correction which has resulted in a low 1,1160 last night.
Recall that the EUR/USD pair is affected since Monday by the prospect of a fine from the EU against Italy for budgetary slippages, which could spell the beginning of a new debt crisis in Europe.
According to the current information, a decision may be made on 5 June, but the deputy prime minister Italian Salvini has already reacted strongly yesterday, saying the rules of Europe’s “old and obsolete” in response to this threat of financial sanction.
The Dollar is also rising, which reinforces the decline of the EUR/USD. The voltage is always strong between China and the United States, with the latest nouvelless possible restrictions of chinese exports of rare earths to the United States, which constitute a new escalation.
In this context, it is easy to imagine increasing risk aversion, the Dollar, although directly concerned by the conflict with China, benefiting from its safe-haven status relative to it.
Today, the calendar will remain as it has been since the beginning of the week quite empty, with only the figures of the German unemployment from 9: 55 to watch.
From a graphical point of view, it should be noted that the threshold of 1,1160 on which is currently the Euro-Dollar is the retracement of 50% of the increase between the new low annual last Thursday and the summit meeting 1,1215 Monday morning.
A break below this level would signal a technical bear important, which would be in line of sight 1,1130, and then 1,1106, the low annual.
Up, the psychological threshold of 1.12, the summit Monday to 1,1215 and the old resistance of 1,1225 form a first barrier, above which we can consider the upside to resume the hand.
In this case, 1,1265 and 1.13 will be the first potential objective.