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#1 12-02-2020 10:19:50

Admin & Trader
From: Paris - France
Registered: 21-12-2009
Posts: 2831

EUR/USD: the pair is perhaps done declining, but...

EUR/USD: the pair is perhaps done declining, but only a return above 1.10 would suggest it's time to buy

Although it's too early to consider a rebound, the pair may have found a temporary floor after hitting new annual lows yesterday at 1.0889, not far from last year's low of 1.0878, and after climbing back above 1.09. The pair is currently trading at 1.0921, close to the 1.0878 low of 2019.

It is worth noting that yesterday's decline didn't seem to be in line with the news as the economic calendar was not very busy.

The only notable event was Mr. Powell's speech to Congress, which did not bring any new information to refine expectations regarding the Fed's monetary policy.

Jerome Powell will speak again before Congress today at 16:00, but no new information since yesterday is expected.

The pair will be more likely to show significant movement from tomorrow, with the January US CPI at 14:30, ahead of Retail Sales the following day at the same time, two major economic indicators.

This pleads for consolidation today, probably between 1.09 and 1.0926.

Note that last year's low of 1.0878, yesterday's low of 1.0889 and the psychological threshold of 1.09 form an important immediate support zone, the breaking of which could allow us to target the psychological threshold of 1.08.

On the upside, any rebound below 1.10 should for the time being be considered as a selling opportunity. Above 1.10, we can consider that the downward pressure is weakening.

Currently, the EUR/USD pair is trading around 1.091521 on the forex.

Hourly EUR/USD chart

"Anything worth having is worth going for - all the way." - J.R. Ewing



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