EUR/USD: The Euro threat to correct, but everything will depend on the GDP at US this Thursday


© O Financista. EUR/USD threatens correction

By David Wagner

Investing.com – The Euro-Dollar is still able to continue its increase, after you have tested without success the psychological resistance of 1.14 yesterday and the day before yesterday ?

The graphics configuration of the current pair is certainly bullish, before an ascending channel visible from the February 15, which remains valid, but the evolution in the very short term of the Euro-Dollar urges caution, with a pressure that is more pronounced on the lower bound of the channel and a solid barrier of 1.14.

Today, the publication of GDP US preliminary Q4 2018 (14: 30) could prove to be decisive for the short-term evolution of the pair EUR/USD. The disappointing numbers could weigh on the Dollar, and allow EUR/USD to test again the psychological threshold of 1.14, or even validate a crossing.

Outside of this major event, the traders will also need to monitor the preliminary figures of inflation in Germany at 14h, as well as the index, Chicago PMI, expected at 15: 45.

From a graphical point of view, it should be noted that under the lower bound of the uptrend channel, currently located at 1.1370, there are other supports close, with the moving average 100 hours at 1.1362, the support of 1.1350 and the moving average 200 hours to 1.1345.

If all of these levels give way, we may consider that a bearish reversal is imminent, and in this case, the next support to watch will be located at 1.1320-25, and then 1.13, 1.1275, 1.1250 and 1.1233, the lowest this year.

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