Friday, July 20, 2018

EUR/USD - 20 July 2018

  • Dollar
  • Euro

Fundamental Highlights

The Single currency continues to push higher as the greenback weakens. The U.S Dollar began to weaken during yesterday's U.S session although the economic data released was very positive. The weakness was attributed to Trump announcing his discontent with the Fed's current policy in regards to increasing interest rates. Trump fears that the current path of rate hikes will curb economic growth and increase the U.S Dollar's value to unsustainable levels.

For today, we do not have any economic releases related to the currency pair. The main driver of the currency would be yesterday's negative remark by Trump. Hence, fundamentals point mainly towards a continuation of yesterday's rise.

Technical Analysis

The pair broke below the 1.16100 level but rose back up immediately as bears got faked out by the break. Moreover, the Euro has recently formed a bullish, reversal ABCD pattern which indicates a rise towards the next resistance level at 1.1720 which coincides with the 0.618 Fibonacci retracement.

Support: 1.16100 1.15600
Resistance: 1.16640 1.17240

Chart (H4)