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The pressure remains bearish for the EUR / USD on the Forex, after the new lows (1.1267) this morning, while investors are waiting for the speech of Powell, the boss of the Fed, at 18h.
Several information continues to weigh on the single currency, including negotiations between Italy and the EU which promises to be difficult on the issue of the budget, as could be seen with several recent statements, while optimism prevailed at the beginning of the week.
Rumors of US tariffs on European vehicles
Yesterday's rumors from the German press about possible US tariffs on European vehicles that weighed on the Euro yesterday have also gained credibility today.
There were indeed tweets from President Trump in which he lambasted the fact that other countries are taking advantage of the United States in the automotive market, stressing that if a 25% tax was applied, more vehicles would be manufactured in the US.
Watch out for Powell's speech
Traders are now waiting for the Fed boss's speech at 18h to decide which way to bet on the Euro-Dollar in the short term. Some analysts suggest the possibility of a more dovish tone from the Fed, which could weigh on the Dollar, and raise EUR / USD.
EUR / USD Technical Analysis
In the meantime, the graphical trend remains clearly bearish on EUR / USD, with in particular a line of declining trend visible since last Friday, and with a bearish cross of the MM100h under the MM200h realized yesterday.
As for the thresholds to be monitored, in addition to this morning's trough at 1.1267, we can locate a first support at 1.1250, before the annual trough 2018 at 1.1215, then the psychological threshold of 1.12.
On the upside, the resistances are at 1.13, 1.1340-50, 1.14 and 1.1420-25 at first. Beyond this, we can consider that the downward trend is in question, with possible buying opportunities for the next resistance at 1.1450, 1.1475 and 1.15.
Currently, the EUR / USD is trading around 1.1280 on Forex.
EUR / USD H1 Chart
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