EUR / USD trades with moderate gains on Wednesday morning session trying to win back some losses. On Tuesday, the pair was under strong pressure, as USD dollar was gaining even despite weak statistics. According to the data released, the consumer confidence index was only 126.4 points, with a forecast of 127.6 points, but the last month's level was revised from 128.0 to 128.8 points. Investors have reacted poorly to this data and statistic was ignored for the most part, as the figure remains at its highest levels since mid-2001.
European currency weakness is primarily due to the lack of important news information from Europe. There are no new drivers on the market yet, which could increase investors' interest in Euro longs. No important economic and political developments have taken place in Europe in recent days. In the political part, investors are primarily expecting an EU summit, which will start tomorrow. In the economic part, the most important data will be published on Friday, the main focus will be on inflation.
On Wednesday, no important reports are expected. On the chart in general, the situation has not yet changed. As long as the pair is above 1.1640-1.1650, prospects for further growth persist. After the rebound from the support at 1.1552, we are waiting for the development of the upward wave with the target at 1.1825. The same scenario is also supported by local indicators, which retain their ascending direction. At RSI, as before, a strong divergence was formed which strengthens the reversal signal.
#Forex analysis
European currency weakness is primarily due to the lack of important news information from Europe. There are no new drivers on the market yet, which could increase investors' interest in Euro longs. No important economic and political developments have taken place in Europe in recent days. In the political part, investors are primarily expecting an EU summit, which will start tomorrow. In the economic part, the most important data will be published on Friday, the main focus will be on inflation.
On Wednesday, no important reports are expected. On the chart in general, the situation has not yet changed. As long as the pair is above 1.1640-1.1650, prospects for further growth persist. After the rebound from the support at 1.1552, we are waiting for the development of the upward wave with the target at 1.1825. The same scenario is also supported by local indicators, which retain their ascending direction. At RSI, as before, a strong divergence was formed which strengthens the reversal signal.
#Forex analysis
