EUR/USD bounced hard to 1.1715, but it was rejected
InvestingOnline.com
25/07/2018, 19:16The Euro is trading higher against the US Dollar on Wednesday as the pair bounced back from 1.1665 to test intra-day highs at 1.1715. The EUR/USD is now trading down below the 1.1700 area.
EURUSD daily chart July 25
In the bigger forex chart, the EUR/USD is trading positive on Wednesday after closing two negative days that drove the pair from 1,1750, 2-week high, to trade as low as 1.1650 on Tuesday. The cross is trading 0.11% positive on the day at 1.1695.
The EUR/USD is trading in a narrow range as investors are waiting for developments about the meeting between Donald Trump and the European Commission President Jean-Claude Juncker.
Before the meeting, Trump said that they “are looking for a fair trade deal, and hopefully we can sort something out.” Junker said that the United States and Europea are “friends, not enemies.”
Technical conditions for the Euro-dollar are neutral as 20 and 50 days moving averages are about to confluence around 1.1685. The 200-day moving average is slightly down. MACD is neutral, and RSI is defining the direction.
To the upside, the pair needs to clear up the 1.1750 area to spur bulls sentiment. Above there, next resistances are at 1.1800 and the June 14 high at 1.1850. The 200-day moving average lies at 1.1980.
To the downside, the pair needs a close below the 1.1630 and a break of the 1.1580 to believe in the down risk. Below there, check the 1.1500 area as the next significant buying zone.
Dollar index under pressure; testing 50-day moving average
The dollar index is trading 0.27% negative on the day at 94.35 as the greenback is under scrutiny before the Trump-Junker meeting.
The unit is testing the 50-day moving average at 94.30. A line which is serving as a supporter for the DXY since its broke on April 19.
Levels to watch on the upside are the 94.90 price, then the 95.50 area dan above that, 96.30 is the most significant selling area. To the downside, 94.20, 93.70 and 93.20.
