Session closure above 1.16 can support further euro rebound

Posted 07 August, 2018

The euro to US dollar exchange rate has faced good support after touching the late-June bottom at 1.1530 yesterday. The rate has become somewhat balanced again and started offsetting some losses. In this situation, traders become active seeing the price coming to the 1.15 handle, which is the key line for the bears. If the rate falls below this line, the euro will face problems and can resume falling down to 1.13.

The exchange rate is still mainly driven by the mood of the US dollar players. Specifically, the markets have recovered from the hit of new development of the US-China trade issue. As a result, demand for the risk is rebounding. At present, better investors sentiments affected the greenback which usually soars during the escalation of US-China conflict.

This week is unlikely to bring significant reports, so the market sentiments may be among the key drives till the end of the week. Meanwhile, the euro can be depressed by the reports in Italy – the government considers an increase in state spending and expansion of the budget deficit.

The euro to US dollar rate still can go downwards. For now, the rate has exceeded 1.16, and stable upward movement may support the short-term outlook and push the rate to 1.1660, the line of 20-day moving average. This scenario can take place in case of the session closure above 1.16.

Previous forecast

08 August, 2018 15:08

← Market players face lack of market guides

The economic reports are scarce this week. The global markets may get interesting figures only on Friday once the UK and USA release economic reports. Till that time, the players cannot choose but monitor the development of the US-China trade conflict, which expectedly showed new development. The markets are now running from the risks after a short-lived break.

Market players face lack of market guides

Next forecast

06 August, 2018 16:26

Sterling shows no upward perspective so far →

The sterling has remained below the 1.30 line, entailing its new selloffs on Monday. The sterling to US dollar rate plunged to the bottom at some 1.2935, coming closer to the bears' target – 1.29 handle. Along with healthy greenback, an additional influence comes from the careful and downward statements of the BOE representative fueled by the Brexit uncertainties.

Sterling shows no upward perspective so far
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