FXStreet – According to the Asian trading, the new 6-month high at 1,1172 was formed, dragged the EUR/USD at the beginning of the European trade.
EUR/USD is waiting for new pulse by U.S. data
The EUR/USD ended his winning streak and he is quoted on Thursday in the loss, while the Greenback has for the first time in 5 days, a profit, after he had suffer from the Trump controversy. The US Dollar Index recovered from its multi-month low from the area of the 97,28 to 97,50.
The correction, the pair goes hand in hand with the rise in US yields, after the last few days, with the increasing political uncertainty in the United States and the declining expectations of a Fed interest rate increase. According to the CME Group FedWatch Tool, the Chance for a June interest rate increase was only 64%, to 90 % in the last week.
The downward correction could be in the EUR/USD strengthened, while the market tends to be taking his USD Shorts to profit. From the Eurozone, don’t expect any major fundamentals and is the focus of investors on the USD dynamics and the developments surrounding the alleged Trump-Russia relationship.
EUR/USD technical levels
Jim Langlands of FXCharts.com says: “On the 4-hour chart, the Momentum indicators are extremely overbought, so some consolidation/correction is likely to appear, while the longer-term upward trend is intact as long as trading above 1.0900. On the other hand, a small support to 1,1120 and the Plan is to buy appears to be a setback. New Long positions should be seen with a SL under 1,1080.”
** FXStreet News Editorial, FXStreet**