The EUR \/ USD pair managed\nto reverse its early decline to its lowest level since May 2017 and rebounded\nquickly from 20-25 pips from the day low of $1.1118 per EUR.<\/p>\n\n\n\n
Despite\nstronger-than-expected US durable goods orders, the US dollar lost part of its\nearly strong gains to a two-year high. This turned out to be the only factor\nthat drives some short bounce from oversold conditions.<\/p>\n\n\n\n
However, the rise has no\nstrong conviction and is likely to remain limited amid growing concerns about\nthe eurozone economic slowdown, reiterated by European Central Bank Vice\nPresident Luis de Guindos, who said that we cannot be \u201csuper optimistic\u201d about\nthe European economy.<\/p>\n\n\n\n
It would therefore be\nprudent to wait for a sustained buy before confirming that the pair may have\nreached a near-term bottom and before traders begin to take positions for any\nreal recovery as the focus will now shift to the release of the US Q1 GDP\nreport on Friday.<\/p>\n\n\n\n
Meanwhile, price dynamics\nin USD may continue to affect price action, through technical formation favors\nsome near-term consolidation \/ modest technical bounce towards the 1.1175-80\nsupport level which has now turned into resistance.<\/p>\n\n\n\n
According to analysts, the\n4-hour chart seems to be maintaining its strong bearish slopes, where RSI is\ncurrently at around 19. This indicates that sellers are not ready to abandon.\nOn the chart, 20 SMA gains downward\nmomentum less than the larger\nones, currently near 1.1205. Therefore, the pair can correct up to the latter,\nprovided that the correct catalyst is provided.<\/p>\n\n\n\n
This week the dollar rose to a new record for the year. The rise was driven by US\neconomic growth data. Many fund managers are increasingly convinced that the\nglobal economy is entering a period of low growth and low inflation.<\/p>\n\n\n\n
Concerns for falling growth\nand inflation this week were triggered by Australia’s weak consumer price\nindex, and pessimism from European manufacturers’ (the German IFO) and weak GDP\nin the first quarter. We have also seen a slowdown in communication from a wide\nrange of central bank such as the Bank of Canada, the Swedish Riksbank and the\nCentral Bank of Turkey.<\/p>\n\n\n\n
Despite some positive\nshort-term US activity data, the interest rate market has been struggling to\nshrug off fears of a slowdown. While the jury is still uncertain on whether the\nfixed \/ inverted yield curve predicts the next US recession, the dollar\ncontinues to perform well. In fact, the Dollar Index (DXY) broke a new record\nthis year and has now recovered nearly three-quarters of the decline since\nTrump was elected in January 2017.<\/p>\n","protected":false},"excerpt":{"rendered":"
The EUR \/ USD pair managed to reverse its early decline to its lowest level since May 2017 and rebounded quickly from 20-25 pips from the day low of $1.1118 per EUR. Despite stronger-than-expected US […]<\/a><\/p>\n<\/div>","protected":false},"author":1,"featured_media":1178,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[49],"tags":[28,27,52,50,77,51,25,26,29,81],"_links":{"self":[{"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/posts\/1177"}],"collection":[{"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/comments?post=1177"}],"version-history":[{"count":1,"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/posts\/1177\/revisions"}],"predecessor-version":[{"id":1179,"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/posts\/1177\/revisions\/1179"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/media\/1178"}],"wp:attachment":[{"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/media?parent=1177"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/categories?post=1177"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/tags?post=1177"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}