April 29th, uro is correcting after rising to 1.2150

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On Wednesday, April 28, by the end of the day, the euro rose in price against the US dollar by 0.29%, to 1.2125. The euro started the day weak, but the rebound from 1.2056 gave buyers confidence. The active phase of strengthening the euro began during Powell's speech.

The rates and amount of incentives remained the same. US Federal Reserve Chairman J. Powell said that the economic recovery is still intermittent and far from over, therefore, considers it premature to discuss curtailing asset purchases.

The Federal Reserve is poised to use its full range of instruments to support the US economy, helping to achieve its goals of maximum employment and price stability.

Scheduled statistics (GMT +3):

  • 10:55, Germany is to release a report on changes in the unemployment rate and the number of unemployed in April.
  • 12:00 the eurozone will present the index of business optimism in the industry, the index of economic sentiment and the index of consumer confidence for April.
  • 15:00 Germany is to publish the CPI for April.
  • 15:30 the United States will present data on GDP for the 1st quarter and the number of initial applications for unemployment benefits.
  • 17:00 in the US there will be data on the change in the volume of pending home sales in March.

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Current situation:

In Asian trading, the EUR/USD pair rose to 1.2150. Probably, the weakening of the dollar was caused by J. Biden's speech. He made an official statement to the US Congress.

At the time of this writing, the euro is worth 1.2117. It is believed that the correction was caused by the growth of the yield on 10-year Treasury bonds to 1.643% from 1.608% per annum, as well as the declining EUR/GBP cross. The cross reached the key support at 0.8676.

Major currencies are trading in positive territory, except for the Japanese yen and the Swiss franc. The leader in terms of growth is the British pound (+ 0.24%).

For today it is worth highlighting the support at 1.2094 (4). The correction amounted to 38.25 from the increase from 1.2056 to 1.2150. Although the cross puts pressure on buyers, they are determined to move higher. The main resistance is the level 1.2150 (2). It formed from the tops 1.2080 and 1.2117. If the selling of the euro stops in the crosses, then a recovery in the euro can be expected.

In the American session, a surge in volatility is expected after the release of American statistics. The focus of speculators is on the US Q1 GDP report. According to average forecasts, economists are expected to grow from 4.3% to 6.1% q / q.
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Summary:** At the beginning of the European session, the single currency was crushed by crosses and higher yields on 10-year Treasuries. The focus of traders is on the US Q1 GDP report. The euro / dollar pair retraced 38% of the rise from 1.2056 to 1.2150. The bullish trend, which originated at the end of March from the level of 1.1704, remains in force. Buyers are set to move above 1.22. Intermediate resistance is the level of 1.2150. Support lies at 1.2094.

Posted Using LeoFinance Beta



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