Forex – EUR/USD: The rebound of the Euro-Dollar is it sustainable?

© O Financista. The rebound of the Euro-Dollar is it sustainable?

What looked like the start of a simple technical rebound of the EUR/USD begins increasingly to take the form of a bullish reversal, although it is still too early to consider the purchase.

After you have marked a new low annual 2019 to 1.1257 after yesterday morning, the Euro-Dollar has begun to rebound up to score a pic on 1.1341 this morning.

The correction of the Dollar is sustainable ?

No new as to justify a strengthening of the Euro could not be found in Europe, and it is, therefore, especially on a correction of the Dollar was based on the rebound of EUR/USD.

However, this correction is essentially technical in the greenback could quickly come to an end, with positive progress in the negotiations between China and the United States, and with a recent agreement which should avoid a new “shutdown” of the government, of items to be reassuring, which could limit the potential downside in the greenback.

Several technical signals bullish

The other hand, one can identify several signals positive from a technical point of view on the EUR/USD since yesterday, with a return above the psychological threshold of 1.13, above the trend line is downward visible from the summit of 31 January, and above the moving average 100 hours.

In the case of continued upward, the next resistance to be credible is to 1.1350 before the moving average 200 hours to 1.1371, and then the psychological threshold of 1.14.

The downside, the first support to watch is the moving average 100 hours currently at 1.1319, before the psychological threshold of 1.13, under which we may consider that a possible bullish reversal is imminent is no longer current.

In this case, the next support that could serve as targets will be located at 1.1257, the hollow 2019, and then 1.1214, the low of last year.

An economic calendar is quite light this Wednesday

Finally, it should be noted that the economic calendar of the day will not be particularly loaded with the industrial production of the Euro Zone at 11am, and then with the CPI US 14: 30.

We will, of course, also welcome all the new balances, if any, regarding the negotiations on China-USA, the shutdown, or the Brexit.

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