EUR/USD analysis: Trump-trade being tested at the US Congress
|EUR/USD Current price: 1.0787
European currencies saw little action this Thursday, holding within familiar ranges amid a scarce macroeconomic calendar and the absence of a major catalyst. The EUR/SD pair settled at 1.0787, pretty much unchanged daily basis, having however, set a lower low and a lower high daily basis. The market seems to have made a pause as the "Trump trade" is undergoing a major test, given that the Obamacare repeal bill is in the Congress. A positive vote from policy makers, may revive investors hopes, somehow paving the way for policies related with tax cuts and growth.
Germany releases the GFK consumer confidence survey for April early London, showing that sentiment eased as the survey resulted at 9.8 from previous 10.0, with rising inflation denting buying power. In the US, weekly unemployment claims rose in the week to March 17th to the highest in seven weeks, printing 258K against expectations of 240K and previous revised 243K. New Home Sales, on the other hand, surprised to the upside, rising by 6.1% in February to a seasonally adjusted total of 0.592M. Attention this Friday will center in March preliminary PMIs for the EU, expected to show that both, the manufacturing and the services sectors, remain in the growth path.
The upward strength continued fading in the short term, as in the 4 hours chart, the price is now stuck around a still bullish 20 SMA, whilst technical indicators have turned lower, with the Momentum already below the 100 level and the RSI around 54, while selling interest around 1.0820 remains strong. Still, the price needs to accelerate below 1.0765 to begin a downward corrective move, while only below 1.0700 bears will retake the lead. At this point, the pair needs to surpass 1.0828, February monthly high, to confirm a bullish extension towards 1.0870, December high.
Support levels: 1.0765 1.0730 1.0700
Resistance levels: 1.0830 1.0870 1.0910
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