EUR/USD: Euro Growth Resumes, However...
Yuri Papshev | Apr 25, 2017 09:15
The euro, which rose sharply on Monday amid the results of the first round of the presidential elections in France, is growing again today. The victory of Macron weakened fears about the future of the single European currency.
Meanwhile, the US dollar fell to a minimum since early November last year. The growth of the euro led to the fall of the US dollar index, which displays the value of the US currency against other 16 currencies, on Monday by 0.3%, to the lowest level since November 9. Recall that the elections in the US were on November 8, and the dollar significantly strengthened after that in the foreign exchange market.
Investors' apprehensions about the implementation of Trump's plans to stimulate the US economy intensified after he earlier failed to successfully implement changes in the US healthcare system.
The dollar is gradually losing ground on the market amid signs of a slowdown in the US economy, questions about the rate of rate hikes in the US and political uncertainty surrounding the actions of the administration of Donald Trump.
Nevertheless, today the dollar is growing in the market against commodity currencies and the yen, while it is falling in the pair EUR/USD. Yesterday, the pair EUR/USD broke through the key resistance levels 1.0740, 1.0800 (144-period and 200-period moving averages on the daily chart) and today resumed growth. Technical indicators on the daily chart turned to long positions. Downward dynamics on the EUR/USD pair will return with its fall below the level of 1.0800.
Trump promised to present a large-scale plan for reducing taxes this week. He gave the order to prepare a tax plan that would reduce the corporate tax rate to 15%. And this is a stimulating factor for the growth of the dollar.
From the news for today it is worth paying attention to the data from the United States. At 14:00 (GMT), the US consumer confidence level for March is published. The previous value of the indicator is 125.6. The growth of the indicator will strengthen USD, and a decrease in value will weaken the dollar. It is expected that this indicator will come out with a value of 123.7, which will have a negative impact on the dollar when the forecast is confirmed.
Support levels: 1.0800, 1.0740, 1.0685, 1.0580, 1.0530, 1.0500, 1.0485
Resistance levels: 1.0905, 1.0950
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