© O Financista. The trend remains bearish on EUR/USD
Investing.com – The EUR/USD pair has lost a lot of ground last week, between a peak at 1.1442 Monday, and a low of 1.1270 Friday.
Remember that the sharpest fall took place Friday, with the PMI indexes very disappointing in the euro area, and with retail sales US exceed the expectations that have boosted the Dollar.
Nevertheless, the EUR/USD pair was able to regain ground before close of Forex, closing the week just above 1.13. Yesterday evening and this morning, the Euro-Dollar has tried to increase its upswing, with a recent high at 1.1322, but the trend remains negative on the bottom.
The trend remains bearish on EUR/USD
In fact, one can identify several trend lines downward, one starting last Thursday, and the other starting on the 9th December.
From a graphical point of view, the current bearish trend background would not be questioned that in the event of the crossing of the area around 1.1350, which contains the moving average 100 hours (1.1341), and the moving average 200 hours (1.1355).
Beyond that, the next resistances to watch for in case of increase are to 1.14, 1.1420-25, 1.1450, 1.1475 and 1.15.
In the event of a correction, a return to below 1.13 confirms the realignment with the downward trend of the background, with potential targets downside to 1.1265-70, 1.1215 (hollow annual 2018), and then 1.12.
Monitor in the news this Monday
At the level of news to watch today, Brexit and the budget, the Italian will remain at the centre of attention.
In regards to the budget Italian, we have been able to learn over the weekend that an agreement has been found between the PM delegates Di Maio and Salvini, and the Prime Minister-Tale about the “numbers and content” of the budget of 2019, which should allow Rome to submit this week to the EU a new proposal formellle.
For the Brexit, the situation is still very unclear, with the evocation of a new referendum, or even the preparation of “Brexit” without agreement on the EU side among the info this weekend.
Finally, the economic calendar will also be events potentially influential on EUR/USD this Monday with the CPI in the Euro Zone at 11am, and the manufacturing index from the Fed of New York at 14: 30.