EUR/USD: The Euro jumps to his feet, but several factors limit the potential

© Reuters. The Dollar’s weakness lifted the Euro – After a phase of anemia that has lasted since the beginning of the week, the exchanges come alive on the EUR/USD pair this Wednesday at the end of the european session, with the beginning of the rally to the upside.

The Euro-Dollar has indeed marked a recent peak on 1.1390, which enabled him, from a technical point of view, to move above the moving average 100 hours for the first time since the 11th of January, which is a bullish signal.

The movement seems to be in large part linked to weakness in the Dollar, what we can confirm by noting the drop in the Dollar Index, which just scored a low of 95.75, after a summit in 96.03 less than two hours before.

The US stock exchanges, which cancel out a large part of their gains after opening sharply higher, are probably not foreign to this weakness in the greenback.

However, it should be remembered that the increase would remain limited, both because of the ECB meeting tomorrow, as due to technical factors.

The expectations lean in for a meeting of the ECB’s dovish tone, given recent signs of a global economic downturn, which should prompt the Central Bank to be cautious in his remarks.

From a technical point of view, the psychological threshold of 1.14, and the moving average 200 hours to 1.1405 form an area of critical resistance close to current levels, and that the traders may be reluctant to be tested before the ECB.

If a break above this threshold occurs, the next resistances to watch are at 1.1425 and 1.1450.

Has the decline, 1.1370, 1.1350 and 1.13 are the first media that the EUR/USD will meet in the event of a correction.

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