Today we would look at one of traders’ favourite tools, namely the EUR/USD. Yesterday the pair exhibited a somewhat strange behaviour and moved sideways, but in the end traders began buying it. Currently we can notice that there are several support levels for the pair around 1.11, more specifically 1.1130 and 1.1119. If the EUR/USD manages to grow from there,it has the potential to expand upward. We could look for potential target levels between 1.12 and 1.13.
It’s important to bear in mind that the EUR/USD is undergoing some volatility due to fundamental events. After last week’s increase of interest rates in the United States by the Federal Reserve, investors strongly believe that we would see a new rate hike soon again. We are also expecting some key economic figures from the US, such as the natural gas storage numbers and unemployment claims, among others. There are a some reports coming from within the European Union as well. We are expecting the European Central Bank’s economic bulletin and the consumer confidence index from the EU. In addition, news regarding the Brexit negotiations can also affect the pair. Due to a more-or-less constant state of uncertainty both in the United States and the European Union we predict that the EUR/USD would likely remain volatile for a few months, making it difficult to pinpoint a strong and reliable trend. For traders who wish to continue trading the EUR/USD despite this, it might be prudent to make deals with smaller volumes and short time spans. As of this article’s publication the EUR/USD is trading around 1.1172, below the resistance of 1.1204. Most technical indicators are in agreement, showing buy signals.
