EUR/USD analysis: Trump's presser spurs more uncertainty, dollar pays the price
EUR/USD Current price: 1.0607
A cautious mood prevailed during the first half of the day, as the market waited for the first speech of the US upcoming President Trump, in the US afternoon. The American dollar appreciated ahead of Wall Street opening, sending the EUR/USD pair to its lowest for the week at 1.0453, helped by the positive tone in worldwide stocks and, but turned south after the presser, with the EUR/USD advancing beyond the 1.0600 level. Trump's comments covered many aspects of his upcoming administration, but uncertainty persists as its unclear which are his priorities. Among others, he criticized the pharmaceutical industry, insisted that Mexico will end up paying the wall, and announced the creation of a trust, administrated by one of his sons, who will take care of his business as he won't be able to do both. Despite some positive words towards the automakers industry, stocks fell sharply after his comments, putting the greenback under pressure across the board.
Closing the day up, the EUR/USD pair establish itself above the 23.6% retracement of its latest bearish run, although the lower low daily basis, has somehow increased the risk of a new leg lower for the upcoming days, moreover as the pair has been steadily rejected from advances beyond the 1.0600 figure. In the 4 hours chart, the price has recovered above all of its moving averages that anyway have turned horizontal, a clear indication of the absence of directional strength, while the 20 and the 200 SMAs, stand quite close to the mentioned Fibonacci level. Technical indicators in the mentioned time frame have abruptly changed course an entered positive territory, but without enough to strength to confirm a steeper recovery. As commented on previous updates, only a firm advance beyond the 1.0650 level will open doors for additional gains, whilst below 1.0445, chances are of a retest of the multi-year low posted early January at 1.0340.
Support levels: 1.0565 1.0530 1.0490
Resistance levels: 1.0620 1.0650 1.0710
Author
Valeria Bednarik
FXStreet
Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.
