Eur / Usd – profit fixation brought pair lower 1.18

EUR / USD dynamics is determined by technical factors and weakness of the US currency. Yesterday the being oversold US currency somewhat returned to gains amid the background of statistical data on technical factors. The statistics came out mixed, at the level of forecasts with small deviations, but investors considered them sufficient for further tightening of monetary policy by the US financial authorities.

The main indicator that investors paid attention to was the consumer price index, the indicator reached the level of expectations of 0.1% and thus the annual level dropped to 2.0%. It is quite possible that now investors eventually assess the current level of inflation as satisfactory to continue the gradual increase in the base interest rate from the US Federal Reserve. However we believe that it is just technical factors that setup current USD dollar gain.

Today, the dynamics of trading before the publication of US statistics was determined by data from the EU. The consumer price index for the euro area was published. The indicator came out at the forecast level, has not changed compared to the previous month, and is equal to 1.4%. Since the indicator fully corresponds to market expectations, the reaction to it was minimal.

The technical picture has changed slightly. Of course, after substantial growth, the pair could not gain a foothold above the round level 1.18, and rolled back lower. Today, Eur / Usd is trading near the nearest support 1.1766. Further down to the level of 1.1710 passes the first support zone. Strategic support takes place at the levels of 1.1678-1.1710.

Recommendations - cautious longs from 1.1678-1.1710.

Fort Financial Services