EUR/USD rises cautiously as the market prepares for high-risk events
EUR / USD rises cautiously as the market prepares for high-risk events
The EUR/USD records bounded movements in the second trading session of the week, in a context of lower volatility in the exchange positions, in view of numerous high-impact events in the coming days.
At the time of this writing, the exchange rate advanced 0.15% to 1.1079, taking advantage of the boost provided by macroeconomic data from Germany that showed a considerable recovery in expectations.
The table below summarizes the latest results.
Starting tomorrow, however, volatility could rise substantially thanks to the economic agenda that is full of references. On Wednesday we will have the monetary policy decision of the Federal Reserve and on Thursday that of the European Central Bank.
As the market does not expect changes in interest rates, the attention of investors will turn to the guiding language of Jerome Powell (Fed) and Christine Lagarde (ECB). Both bankers could offer clues about the trajectory of the cost of money.
On Thursday, at the last minute, the focus will be on the results of the general elections in the United Kingdom. If the Conservative Party of Boris Johnson is victorious, online as indicated by the polls, there is room for moderate progress in the euro against the US dollar.
A victory of the “Tories” would facilitate the ratification of the Brexit agreement in the British Parliament, reducing the state of uncertainty that has dominated European markets in the last three years.
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EUR / USD TECHNICAL ANALYSIS
After the falls of the previous week , the EUR / USD seems to have begun a recovery phase, although the buying momentum has been quite weak, a sign of little conviction in the market.
If it continues to rise, it is necessary to consider the resistance in the region of 1.1100 / 1.1115. A rupture of this area would bring into play the 200-day moving average and, in extension, the October and November maximum zone in the 1.1180.
In the event that sellers regain control of the market, the first draft support is located at 1.1000 / 1.0995. A breakdown of this support area would expose the 1.0940.