The EUR/USD deepens its plunge a few hours before the ECB meeting and US GDP

After a sharp increase on Monday, and following a peak at close to 1.07 at the start of the day on Tuesday, the EUR/USD began to rise. a strong correction, which brought back the currency pair below the threshold of 1.0550 at the time of writing this article.

Recall that Wednesday was a busy day. marked by a clear strengthening of the Dollar on the forex, a movement which continues today, the greenback benefiting from several factors

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We will notably cite the sales of new homes higher than the expectations published yesterday, which undoubtedly played a role in this. a role in the slight increase in expectations for the next Fed meetings.

Indeed, if investors still expect with near certainty that A status quo for next week's FOMC meeting, the likelihood from a 0.25% rate increase in December has climbed à nearly 30% this Thursday morning, compared to 25% the day before.

In this regard, we note that a further increase in the rate to 10 years US on a peak 4.97% this Thursday morning, against a low at 4.80% yesterday, also largely favors the rise of the greenback.

The Dollar also seems to have benefited; of a flight towards safe havens in the face of a geopolitical risk which continues to grow, while we have learned that the Russian Minister of Defense has confirmed that Russia was going to start practice nuclear strikes.

As for this Thursday, geopolitics will continue to occupy a good place in the minds of EUR traders /USD, but it is the economic factors which will take center stage, with the ECB meeting and the American GDP.

>>Find the results of all the important statistics for EUR/USD in real time on the economic calendar!

À About the ECB, the market expects a status quo, and we will therefore be mainly interested in the clues that the central bank will provide for the next meetings. Regarding US GDP, data above consensus could further increase expectations of further rate hikes from the Fed, which would be a bullish factor for the Dollar and a bearish factor for EUR/USD. /p>Technical thresholds at to watch on EUR/USD

From a graphical point of view, we will note that the new fall of the EUR/USD this Thursday led to an increase in prices. the currency pair at break below an upward trend line that was visible since the beginning of the month, sending a negative signal.

À At this point, the next important support is the psychological threshold of 1.05, before this year's low around 1.0450. Finally, rising, 1.06, 1.0635 and 1.07 will be the first obstacles to the upside; take into account in the event of a rebound in the Euro Dollar.

EUR/USD accentuates its plunge a few hours before the ECB meeting and US GDP  

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