EUR/USD
The euro fell by 66 points on Tuesday, showing determination to achieve 1.0595 - support for the embedded line of the price channel of the higher (monthly) timeframe. The price has consolidated under the balance and MACD indicator lines, the Marlin oscillator has penetrated into the negative trend zone.
The price also consolidated under the balance and MACD lines on the four-hour chart, Marlin is in the decreasing trend zone. We look forward to pulling down the price further to the designated goal. It is possible to open trading positions at current prices with a stop loss above 1.0890.
The general political background is maintained and enhanced in favor of the dollar. Yesterday, the German Constitutional Court ruled that the Bundesbank would stop buying government bonds, however, until the ECB could prove the need for such purchases. Data on industrial orders in Germany for March will be released today, the forecast is -10.0% against -1.4% in February. The forecast for retail sales in the euro area is -10.5/-11.2%. The eurozone business activity index for the current month is expected to fall from 26.4 to 11.7 points.
The current output of data on jobs in the US private sector from ADP for April is expected to hit a record low (-20.5 million), but a general market rule could work here: buy the dollar when everything is bad everywhere. A positive point for the dollar is Donald Trump's promise to lower taxes again in the fight against the national crisis. In addition, the United States decided to blame the spread of coronavirus on China, which is essentially a direct declaration of a trade war. And as history shows over the past year, the trade war strengthens the dollar.
The material has been provided by InstaForex Company - www.instaforex.com