The strengthening of the Dollar index and the ZEW weighs on EUR/USD this Tuesday

© O Financista. EUR/USD, Euro-Dollar

The EUR/USD pair fall sharply on Tuesday, July 10, accentuating the correction initiated yesterday afternoon following a summit at 1.1790.

It should be remembered that the Euro Dollar started the week on the upside, accentuating a movement of the bounce initiated at the end of the month of June. However, the approach to the psychological level of 1.18 had seemed to be reluctant traders.

This morning, the pair increases, therefore, its correction, in part helped by a ZEW index of economic sentiment in Germany disappointing, to -24.7 points compared with -18 in advance and -16.1 for the previous month.

The Dollar also plays a major role in the developments of EUR/USD since the opening of the Forex on Sunday evening, as we can see with the close inverse correlation that links the EUR/USD and the Dollar Index. The fall of EUR/USD since the summit yesterday also corresponds to a rebound visible on the Dollar Index, and the acceleration to the downside this morning.

From a graphical point of view, it is interesting to note that EUR/USD arrives on an upward trend line visible in the hourly data since the 28th of June, currently at 1.1715, as well as on the moving average 100 hours at 1.1712, not far from the psychological level of 1.17.

The area of the 1.1700-1.1715 therefore has potential to support short-term, before other supports at 1.1680, 1.1640-50 and 1.16.

The increase, 1.1730 appears as an immediate resistance before 1.1760-65n and then 1.1790-1.18.

Finally, we must not forget that the EUR/USD pair is still likely to be influenced by the report JOLTS on the jobs offers in the US, expected to 16h.

Like this post? Please share to your friends:
Leave a Reply