EURUSD: consolidating on the balance line

25 September, 2019

On Tuesday the 24th of September, trading on the euro closed up. The pound came out on top yesterday, making gains in the wake of the UK’s Supreme Court ruling of Prime Minister Boris Johnson’s 5-week prorogation of parliament as unlawful. Opposition figures have called on Johnson to resign.

The US dollar came under slight pressure over talk of impeachment proceedings against President Donald Trump. The dollar’s slide and the pound’s rise saw the EURUSD pair recover to 1.1024.

Day’s news (GMT+3):

  • 11:15 Switzerland: ZEW survey – expectations (Sep).
  • 11:30 UK: BBA mortgage approvals (Aug).
  • 13:00 UK: CBI distributive trades survey – realized (Sep).
  • 16:00 US: SNB quarterly bulletin (Q3).
  • 17:00 US: new home sales (Aug).
  • 17:30 US: EIA crude oil stocks change (20 Sep).

The euro is currently trading at 1.0995, with the bulls paring yesterday’s gains in today’s Asian session. This has snuffed out any chance of continued growth. The pair has broken down out of the upwards channel drawn from 1.0966. Considering that the stochastic is in the buy zone, a drop to the 45th degree is expected, with a bounce from around 1.1013 – 1.1016. There are no significant events planned for today.

The centre of attention is the upcoming parliamentary showdown in the UK, as well as developments in the US-China trade negotiations. US President Donald Trump yesterday again labelled China a currency manipulator. This lowered hopes among investors of a solution being found in the ongoing trade dispute anytime soon. Consequently, gold and the yen have both appreciated. With a lack of any new drivers, it seems unlikely that the pair will drop any lower than 1.0966.


Source  
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