Thursday, May 2, 2019

EUR/USD - 02 May 2019


Fundamental Highlights

The Euro attempted to close above the 200-day moving average (orange line), but failed to cut through it and reversed to close negatively, as the Dollar picked up a bid following the FOMC rate decision. The central bank kept rates unchanged as expected. Chairman Powell, however, pushed back expectations that the central bank's next move would be a rate cut by associating low inflation with transitory factors. This disappointed traders looking for a dovish FED which made the Dollar shorts to cover immediately. Today, major Eurozone countries will be releasing their Manufacturing PMI numbers, traders will be looking for any possible improvement in the Eurozone economy to boost the single currency higher.

Technical Analysis

The Euro broke through 1.1230 (R1) and went on to test the 200-day moving average, as expected, but it got rejected very hard back towards 1.12. The bulls need to break above 1.1230 once again to keep the momentum alive, or else the bears will show up again and the single currency will roll over and possibly break below 1.1185.

Support: 1.1185 / 1.1115
Resistance: 1.1230 / 1.1260 / 1.1280

Chart (H4)