EUR/USD: The risk of a correction increases, while the pressure remains bullish

© O Financista. The trend remains bullish on EUR/USD – The underlying trend remains bullish on the pair EUR/USD on Tuesday morning, but the risks of a correction seem to be more and more high.

Despite the upward pressure, the Euro-Dollar has not managed to exceed the top of the last week, and immediate resistance more and more strong draws to 1.1365-70, which could allow the sellers to take back control.

Recall that yesterday had been the occasion of any major catalyst, if not the announcement over the weekend of an extension of the truce in the trade war China-USA, which had led to a slight appetite for risk which favoured the rise of the Euro.

Today, the program will be more loaded, with a number of important statistics in the program.

With 14h30, will be monitored, in effect, building permits and housing starts US in the month of December 2018. Building permits are expected to decline -2.8%, after +5% in the previous month. Housing starts are also expected to decrease, -0.5%, after +3.2% in the previous month.

At 16h, it is then the consumer confidence index US for the month of February according to the Conference Board which is to be expected. The trust is expected to increase, supported by the growth of financial markets in the US, and the consensus anticipates, therefore, an index to 124.7 points after 120.2 in the previous month.

In addition, the boss of the Fed Jerome Powell will speak this afternoon, at 16h.

From a technical point of view, the uptrend channel visible since the low of February 15, remains topical. Its lower bound, currently to 1.1355, is therefore to be considered as an immediate support near the moving average 100 hours currently to 1.1344.

Further down, the area around 1.1325 will be the next support, before the psychological threshold of 1.13, and then 1.1275, 1.1250 and 1.1233, the low annual 2018.

The increase 1.1365-70 is immediate resistance, before the psychological threshold of 1.14.

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