EUR/USD: The pair is retreating, what are the signals and the objectives to be taken into account?

© O Financista. The Euro fall, signals and targets to monitor

The pair EUR/USD weakened yesterday and last night, breaking below the psychological threshold of 1.13.

Risk aversion is progressing on Thursday, particularly following an attack on oil tankers in the gulf of Oman, which support slightly the Dollar, with also a strong upward impact on oil prices.

Industrial production in the euro zone, which has dropped as expected, from -0.5% in April, according to data published in the morning, but also helps to generate a context unfavourable to the Euro.

The strong fall of the pair GBP/USD, in relation with the concerns and uncertainty about Brexit and the british political, is also to be considered as a factor weighing on the Euro.

This afternoon, investors will be watching to 14: 30, the indices of the import price, and export US as well as entries weekly jobless claims US 14: 30, numbers that could influence trade on the Euro-Dollar in the event of a large gap with the consensus.

From a graphical point of view, several signals downside may be identified as of yesterday evening, with the break below the moving average 100 hours and under the psychological threshold of 1.13.

It should be noted, however, that these breaks have not led to acceleration to the downside is significant, and that the pair remains close to 1.13. A return above this threshold, thus again the way for buying opportunities, especially in the case of a return above the moving average 100 hours currently to 1.1311.

In this case, the area of 1.1340-50, which hosts the summits later this week and the last week will be the first resistance to cross before confirming the increase, with a first target potential on the psychological threshold of 1.14.

The downside, the first support identifiable is the moving average of 200 hours currently 1.1277, before 1.1250, then 1.12 and the low annual 2019 at 1.1106.

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