Eur / Usd - technical picture points to the resumption of medium-term growth

The Frankfurt conference did not bring anything new to the markets. M. Draghi and D. Yellen speeches did not have impact on the market, since they did not contain anything new, however on Tuesday other drivers were present on the market, which increased volatility a lot. Practically from the very beginning of the European session, bulls, inspired by encouraging data on the growth of the German economy, began to push the price of Eur/Usd up. Subsequently, they received support from the data on GDP growth in the Eurozone. US data on the index of the price of producers, which came out better than the forecast failed to slow down bulls.

Pressure on the dollar in recent days was very heavy and it is now difficult to expect a significant strengthening of the US currency. But there are no strong drivers for the growth of the single European currency. Statistics released yesterday were good, but yesterday's growth showed that they have already been fully put in the price, and today important macroeconomic data from the EU is no longer expected. Therefore, the further growth of the EUR / USD pair can be connected only with the further weakening of the US dollar. This is possible if the statistical data published today, primarily the consumer price index, is worse than the forecasted figures.

Recommendation: remain out of the market and wait for signals for the beginning of the corrective downward move. After that, we can search for entry points of long position. Nearest strong support at the level of 1.1745-1.1711

Fort Financial Services