The US dollar has fallen today against other currencies, which surprised everyone. News that could significantly affect the dynamics of the currency are non-existent, except for the Friday press conference, from which US President Trump promised a response against China. Fed Chairman Jerome Powell also did not say anything new, and investors appear to be convinced that the economy is soon to recover as soon as the pandemic recedes.
Nevertheless, other world currencies grew, including the Australian dollar, which has now confidently entered the area of the 67th figure. The euro is also trading in a positive area today, continuing the “bullish” trend formed last week.
EUR / USD
The positive outlook of traders regarding the global economy raised the demand for risky assets, such as the euro. It negated the fears caused by the recent US-China conflict, since despite the threats and harsh rhetoric between the two countries, the first phase of their trade agreement remains in force. These recent occurrences fueled the “bullish” mood of the EUR / USD pair, which today updated Friday’s high.
The focus today of market participants are the macroeconomic statistics that will be published on both the US and the eurozone. It may support the bulls in reaching the level $ 1.12, or even the level $1.13. If the growth of the EUR / USD rate is fast, the first goal of bulls, which is $ 1.12, may be reached immediately. The support level is located at $ 1.1105.
GBP / USD
The British pound is also in a bullish mood today. Attempts of a consolidation above $ 1.2 are being conducted, as the bulls are supported by the corrective movements in the dollar.
The quotes have successfully moved away from the moving averages 144, 34, 55 and 89, which are the support levels of $ 1.2318, $ 1.2280, $ 1.2259, $ 1.2246. The MACD line is also in the positive zone and above its signal line.
In addition, the Stochastic Oscillator has partially entered the overbought zone, showing the same bullish signal. However, it is advisable to wait for a breakout from $ 1.2414, as the failure of if will resume the downward correction, and possibly bring the quotes to the levels $ 1.2343, $ 1.2316 and $ 1.2293.