Currency pair EUR / USD on Thursday continued to move in the global bearish trend once again rewriting the annual minimum.
Reduction of the currency pair EUR / USD is happening against the background of weak data from the European statistical reports published at the beginning of the trading week, as well as large-scale strengthening of the US dollar, whose index continues to be kept at the highest level since June 2017.
Increased investor interest in dollar is observed not only due to the weakening of major world currencies, but also the currencies of developing countries. In particular, yesterday the Argentine peso slipped against the dollar by 6.3% and the Turkish lira has lost about 1% of the price. Recent economic statistics of the key regions of the world, as well as signals of the central banks of the tendency to implement a loose monetary policy increase the gap between the growth in the US economy and other countries, which increases the attractiveness of the dollar, including as a protective asset.
Today, the European economic calendar though, so the dynamics of the movement of the pair EUR / USD will depend on investor sentiment in the stock markets and the dollar index fluctuations. In the US today, all eyes will be focused on the initial assessment of the data on US GDP growth in the 1st quarter of 2019. Experts expect a growth rate of 2.0%, after 2.2% in the 4th quarter 2018.
On the hourly chart the pair EUR / USD movement continues within the descending price channel. Currency pair EUR / USD after a brief consolidation selling support at 1.1150, outlined the priorities in the direction of further development of the downward movement with the main objective at the level of 1.1100. Locally we see development recoil movement with the most likely aim at 1.1165, which forward the formation of topping signals at a younger timeslots and resuming movement of the pair EUR / USD down toward purpose mentioned above to 1.1100.
resistance levels EUR / USD: 1.1165, 1.1220, 1.1260.
Levels of support for EUR / USD: 1.1130, 1.1100, 1.1000.
The main scenario - a correction to 1.1165 and the resumption of the EUR / USD pair down.
Alternative Scenario - consolidation above 1.1165 and further development of the correction of the pair EUR / USD to 1.1220.
The market continues to develop the bearish trend, while fundamentally is no news that could cause a reversal of the price movement. Therefore, preference is given to intra-day sell the pair EUR / USD, which are worth to look at the level of 1.1165.
Do not miss: The trading signal forex 5 to 10% profit per month
Based on materials FortFS