EUR/USD retains a profile bearish
By David Wagner
Investing.com – The bearish trend of the pair EUR/USD has again been confirmed yesterday, in a story that has remained fairly mild.
The EUR/USD marked a new low to 1,1140 yesterday morning, in the face of a Dollar that is reinforced by an easing of relative to the trade war China-USA, after the department of Trade US announced an easing of the temporary of the recent banning of Huawei in the USA.
After a weak morning and a few hours of hesitation, the pair EUR/USD did, however, show a sudden increase in the late afternoon.
The EUR/USD had followed the GBP/USD in its rally to the upside, triggered by the prospect of a new referendum on the Brexit, which would open the way to a cancellation of the output of Britain from the EU.
The increase did not, however, resulted in a reversal of the trend, and the EUR/USD had so quickly resumed its decline, confirming the through seller.
Today, the news will remain quite light, up to Minutes of the Fed this evening, the first major event of the week in the economic calendar.
From a graphical point of view, it is interesting to note that the peak of yesterday has confirmed a line of downward trend visible since the peak of 13 May, and currently located to 1,1175.
Combined with the psychological threshold of 1.12, this trend line forms the first resistance zone important to take into account for the Euro-Dollar today.
A break above this threshold would weaken the profile is bearish in the short term and could allow to consider an extension upward to 1,1225, 1,1265, and possibly the 1.13.
The lower, the old support 1,1150 and the lows of yesterday to 1,1140 form the first zone of support, before the lower annual to 1,1110. More bottom, then it will be difficult to find potential supporters before the psychological threshold key 1.10.
Finally, it will be recalled that the day of tomorrow will be especially critical, with the european PMI preliminary for the month of May, the minutes of the ECB, and the start of the european elections.
Therefore, traders may prefer to be cautious by not committing one way or in another today.