EUR/USD: The timing eco may be critical on Thursday

© O Financista. Decisive day in perspective for the EUR/USD pair

By David Wagner

Update: Since the writing of this article, the EUR/USD has made new lows under 1.1140, pushed down by the plunge of the Pound, which threatens to go under 1.26 this morning in the framework of a plunge of more than 200 pips in two days.

The pressure remains bearish on the EUR/USD pair, which approximates this morning lower Monday, after two days of hesitation, before a day that could prove decisive.

In fact, after the first 3 days of the week where almost none of the statistics influential is coming to animate the exchanges, this Thursday 23 may 2019 will be the occasion of many publications which could influence the Euro or the Dollar on the Forex :

European Statistics

  • Index PMI manufacturing of germany (9: 30am)
  • Index PMI services of germany (9: 30am)
  • IFO index of business climate in Germany (10 a.m.)
  • PMI manufacturing index for the Euro Area (10am)
  • Index PMI services of the eurozone (10am)
  • Minutes of the last meeting of the ECB (13: 30)

Statistics American

  • Inscriptions weekly unemployment US (14: 30)
  • PMI manufacturing index US (15: 45)
  • Index PMI services US (15: 45)
  • Sales of new homes in US (16h)

The opportunities to see the volatility increase on the Euro-Dollar will not fail today, with the european PMI indexes, which tend to be particularly influential on the single currency for several months.

Technical analysis EUR/USD

From a graphical point of view, the trend remains negative, and the two attempts to rise this week do not have in the end served to confirm this trend.

The movements of the rebound of yesterday and the day before yesterday are, in fact, come to test the moving average 100 hours and the line of the downward trend visible since the 13th of May, but the prices are quickly returned to below these thresholds graphs.

However, in order for the downtrend to be confirmed, and to avoid the formation of a solid basis, the EUR/USD pair will quickly pass under the threshold of 1.1140.

Then, the next goal potential will be the lowest annual 2019 to 1.1110, before the psychological threshold of major 1.10.

Has the upside, a return above 1.1175-85 would weaken the bearish view, but only a return back above 1.12 would consider buying opportunities in the short term.

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