April 26th, Euro Strengthening Slowed Due To Lower Crosses

By the end of the week, major currencies showed gains against the US dollar. The largest growth against the US dollar was shown by the euro (+ 0.96%). The Japanese yen gained 0.81%, the New Zealand dollar - 0.74%, the Swiss franc - 0.69%, the British pound - 0.32%, the Canadian dollar - 0.26%, the Australian dollar - 0. 17%.

On Friday, April 23, at trading in Europe, the euro rose to 1.2076 against the background of positive data on PMIs in the manufacturing and services sectors in Europe, including the UK. In the American session, the intraday rally in the euro continued to the level of 1.2100. All the crosses with the euro were on the buyer's side. Plus the American remained under pressure throughout the day.

Scheduled statistics (GMT +3):

• 11:00, Germany will unveil the IFO Business Environment Indicator, the IFO Current Situation Indicator and the IFO Economic Expectations Indicator for April.
• 15:30 the US is to publish a report on the change in the volume of orders for durable goods for March.

Current situation:

On Monday, April 26, trading in the major pairs opened with growth. The first three lines are occupied by the Australian (+ 0.27%), the pound (+ 0.20%) and the New Zealander (+ 0.15%). Asian participants decided to work out Friday's fall in the dollar in the American session.

The EUR/USD pair rose to 1.2117. At the time of writing, the euro is worth 1.2091. The fall intensified amid the beginning of a downward correction in the EUR/GBP cross pair. The strengthening of the euro stopped at 14 points to 112 degrees. degree (1). Today it is resistance. Buyers are still in the mood to move up the ascending channel to the level of 1.2162.

Supports are the 45th degree (2) and the trend line (3). On Friday, the price went up all day. In this regard, on Monday there is a high probability of seeing the closing of the day decrease. The ideal scenario for the next two days is a correction to the 45th degree of 1.2062 (2) with a subsequent rise to 1.2131 (1).

Key news this week: FOMC meeting, J. Powell's press conference, reports with data on GDP for 1 quarter in the US and the euro area, as well as the PMI of China in the manufacturing and services sectors.

Summary: The euro crosses show mixed dynamics. Euro is losing support from the main EUR/GBP cross. Considering that the euro was strengthening on Friday during the day and moved up more than 80 points, then on Monday the risks of seeing a correction before the close of the day increased. Supports are two levels: the 45th degree (2) and the trend line (3). After the correction, buyers can prepare for the offensive and take new highs (1.2130 and 1.2162) before the announcement of the US Federal Reserve decision on Wednesday.

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