© Reuters. The Euro is weakening slightly before the statistics this afternoon
Investing.com – The pair EUR/USD corrected some of its gains from yesterday evening is this Thursday, with a low daily 1.1348 for the moment, after a summit in 1.1397 this morning.
Recall that the pair had taken advantage of yesterday evening and last night a sharp fall of the Dollar, in the face of an intervention by the boss of the Fed deemed dovish.
Today, the Euro corrects, therefore, already a part of its recent gains, in the face of new rumors on customs taxes US on european vehicles imported to the US.
New rumors of tariffs on US cars european
According to the German magazine Wirtschafts Woche, Oettinger, the EU, would, in effect, said that he expects the new rates to US to be applied before Christmas. We note that, after the rumors of Tuesday, tweets from the president Donald Trump had reinforced this possibility yesterday.
The EU has refuted since this information, but given the accumulation of reports and rumors in this sense, it becomes more and more clear to investors that it will be difficult to avoid a tax on european vehicles in the US, which weighs on the single currency, and the prospects for european growth.
The ECB and the GBP also weigh on the Euro
We could also meet this Thursday in the financial stability review of the ECB as the Central Bank considers that ” the downside risks to the outlook for global growth are more pronounced “, a comment dovish which also weighs on the single currency.
Finally, the sharp decline in GBP/USD, which has cancelled all of the gains displayed in the face of the Dollar’s decline yesterday evening, also contributes to pressure on the EUR/USD.
Technical analysis EUR/USD
From a technical point of view, we can see that the retracement Fibonacci 38.2% (1.1348) of the upward movement of yesterday evening has for the moment stopped the correction, and the pair EUR/USD tries to hold above the moving average 200 hours, currently at 1.1370.
The possibilities of further increase therefore remain open, but a quick break confirmed above 1.14 seems to be necessary to maintain the bullish momentum, before the next resistance at 1.1420-25, 1.1450 and 1.15.
For the reduction, the area of 1.1350, former support and resistance, and the retracement of 38.2% of the decline from yesterday to 1.1348 form an immediate support, below which an acceleration downward to 1.13 will be possible.
A monitor in the economic calendar this afternoon
Finally, it will be recalled that the economic calendar will be loaded this afternoon, with germany’s CPI at 14h, consumer spending has US at 14: 30, the promises of housing sales US, at 16h, and the Minutes from the Fed to 20h, which will be the major event of the day, after dovish Jerome Powell yesterday evening.