EUR/USD is trading near its lows since Mar 1 today. After positive fundamentals in the US and very weak data in the Eurozone, the market became clear in being favorable to the dollar. This week, important macroeconomic events are scheduled for Thursday and Friday, hence the market will be consolidating within the next few days.
In the meantime, there were two events in the US that supported the USD. The preliminary Industry Business Climate Index by Markit rose to 56.5, against the expectations at 55.2 and the previous mark at 55.6. The Service Markit Index also rose, but not so high, moving from 54.00 to 54.40. However, in the breakdown by components, one can easily see new order volume grow, which makes the entire indicator increase.
Another news that supported the greenback were the existing home sales that increased to 5.6M, against the expectations at 5.55M. With the supply being rather tight and the loan interest rising, the demand in real estate is still high, as people try to buy homes now, before the price has gone up way too high. In the meantime, the EUR was weak with the mixed data on private sector business activity.
Today is a rather quiet day in terms of fundamental releases, although March new building permits are scheduled later today in the US; with this indicator showing high demand, too, the US dollar may become even stronger.
Technically, EURUSD is still correcting inside a descending channel. The current trend consists of two channels, a broad mid term channel, and a tight short term one. As of now, the price is aiming to the short term channel support at 1.2167. While testing this support, the pair may start trading sideways. However, once the support gets broken out, the price may fall to the mid term channel support at 1.2025. Then, a new ascending move may form, aiming to the resistance at 1.2350.
Disclaimer:
Any predictions contained herein are based on the authors' particular opinion. This analysis may not be treated as trading advice. RoboForex shall not be held liable for the results of the trades arising from relying upon trading recommendations and reviews contained herein.
Before you enter foreign exchange and stock markets, you have to remember that trading currencies and other investment products is trading in nature and always involves a considerable risk. As a result of various financial fluctuations, you may not only significantly increase your capital, but also lose it completely. Therefore, our clients have to assure RoboForex that they understand all the possible consequences of such risks, they know all the specifics, rules and regulations governing the use of investment products, including corporate events, resulting in the change of underlying assets. Client understands that there are special risks and features that affect prices, exchange rates and investment products.
Recommended Content
Editors’ Picks
AUD/USD remains under pressure above 0.6400
AUD/USD managed to regain some composure and rebounded markedly from Tuesday’s YTD lows in the sub-0.6400 region ahead of the release of the Australian labour market report on Thursday.
EUR/USD faces decent contention around 1.0600
The knee-jerk in the Greenback reignited some buying interest in the risk complex and pushed EUR/USD to three-day highs near 1.0680, rapidly leaving behind the recent yearly low around 1.0600.
Gold dips on falling US yields as traders shrug off hawkish Fed remarks
Gold prices retreated from close to weekly highs during the North American session on Wednesday amid an improvement in risk appetite. The bullish impulse arrived despite hawkish commentary by US Federal Reserve officials.
Bitcoin price uptrend to continue post-halving, Bernstein report says as traders remain in disarray
Bitcoin price is dropping amid elevated risk levels in the market. It comes as traders count hours to the much-anticipated halving event. Amid the market lull, experts say we may not see a rally until after the halving.
Australia unemployment rate expected to rise back to 3.9% in March as February boost fades
Australia will publish its monthly employment report first thing Thursday. The Australian Bureau of Statistics is expected to announce the country added measly 7.2K new positions in March after the outstanding 116.5K jobs created in February.